SCRAPPING major projects to save money in the short-term could impact on the council’s long-term financial sustainability, councillors were told.

The matter was discussed at yesterday's (Thursday) meeting of Cheshire East’s finance sub-committee, as councillors were discussing possible measures to reduce the predicted £20.1m overspend by the end of the financial year.

Cllr Reg Kain (Alsager, Lib Dem) said the council was already re-profiling its major schemes and why couldn’t it cut more.

Cllr Reg KainCllr Reg Kain (Image: Cheshire East Council) “The capital programme for 24/25 is reduced to £157.7m from £215.8m, which is £50 plus million.

“Considering we are projected to be £20m in the red, why can’t we knock another £20m off?” he asked.

Paul Goodwin, deputy chief finance officer, said the capital programme was being looked at further but added: “It’s difficult, though, to decide not to do things or to delay spending, when members have approved the capital schemes that they have in recent years.”

He added: “If we spend some money developing a capital project and then don't see it through to ultimate fruition and no capital asset is created, then we potentially have possible aborted costs.”

He said a recent example of this was when the former government scrapped HS2 and the council had already invested millions and that had added increased pressure now on the revenue account.

“So there are consequences of deciding to stop schemes if we’ve already invested a certain amount of money to get to a certain point,” said Mr Goodwin.

Cllr Janet ClowesCllr Janet Clowes (Image: Cheshire East Council) Conservative group leader Janet Clowes said: “If we just scrap all capital projects, we are also scrapping some significant projects that are part of the transformation program.

“So, for example, the need to build additional special needs education accommodation, not least in this building [Westfields, Sandbach].

“So, we need to be very cognisant of that as we move forward.

“We don't want to shoot ourselves in the foot by taking short term actions that would impact on our medium-term ability to achieve financial sustainability.”