Cheshire East Council - Delamere House, Crewe 1 (Google)

Cheshire East Council’s bid to increase council tax by almost 10% has been rejected by the government, it emerged today.

The cash-strapped authority had asked the government for “exceptional financial support” and permission to increase the charge by 9.99%.

This is 5% more than the maximum local authorities can usually increase council tax by without holding a local referendum.

A Cheshire East Council spokesperson said: “Cheshire East Council has been notified today (Monday, 3 February,) that a request for permission to consider raising council tax by up to 9.99% for 2025-26, has been declined by Government.

“The council wrote to the Ministry of Housing, Communities and Local Government in January, requesting permission under arrangements for exceptional financial support, to propose an increase above the ‘referendum limit’, as set out by government in the local government finance policy statement 2025 to 2026.

“The potential increase was requested as one of a range of possible measures that could be taken to ensure the council’s forecast income aligns to forecast expenditure. All councils must, by law, set a balanced budget each year.

“The proposed budget sets out the council’s forecast income and expenditure, with robust savings plans and proposals for the use of exceptional financial support from central government, to ensure that income will cover ongoing costs and future commitments in a sustainable and manageable way.

“The council’s corporate policy committee is meeting on 6 February to discuss the proposed budget for 2025-26 and four-year financial strategy.

“The committee is asked to recommend the budget to council for approval at the council meeting on 26 February. This will include setting council tax for the year ahead.

“The final local government finance settlement: England, 2025 to 2026 has been published today.

“We are reviewing the latest information from government and will update financial plans as necessary. It will take some time to analyse all the detail.”

Deputy Prime Minister Angela Rayner announced that the Government has allowed just six local councils to have “small” increases above the 4.99% maximum.

These are Birmingham City Council, Bradford Council, Newham Council, Windsor and Maidenhead Borough Council, Somerset Council and Trafford Council.

Ms Rayner said there had been a record number of councils asking for additional council tax increases.

She added: “These are difficult decisions that government has not taken lightly.

“We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress – but we have been clear this must be balanced with the interests of taxpayers.

“We have agreed to a limited number of requests and in all cases have not agreed to the full amount requested.

“Where we have agreed, it is only for councils with amongst the lowest levels of council tax, and where we expect, even after these increases, residents will still be paying less than the average compared with similar councils.

“At a national level, even with these increases, the overall increase in council tax is not expected to exceed last year’s.

“Following confirmation of these referendum principles, it will be for individual councils to take final decisions on setting council tax in their areas, having reached agreement locally that the increases are necessary to the council’s financial recovery.

“I have been clear to all councils that they should take whatever steps locally they consider will help to protect the most vulnerable residents from the impact of any additional increase.”

Cheshire East Council is set to approve its 2025-26 budget on February 26th.

12 Comments

  1. Let us not forget that a LABOUR run Council was asking Central Government for go ahead to increase CEC rates by up to 9.99%. Agree with other comment that the ‘business case’ just didn’t add up and there is a need for these inept councillors to be held accountable and they should be dismissed.

  2. Geoff Stockton says:

    Goo News when you pay £200 a month for nothing

  3. Why would any political party give CE opportunity to waste more money ? They have proven to be incompetent and I can only imagine their business case to the Government did not add up and I would be suspect of any governance of additional monies provided. Remember the pothole debacle. CE and CW should merge and residents will benefit from economies of scale, it’s what business do , focus on their customers rather than naval contemplating

  4. https://petition.parliament.uk/petitions/708684
    Join this petition to stop the council moving to 3 week bin collections.

  5. “Lets not let political ideology colour our judgement.”

    No doubt then you are a supporter of Labour now after the disaster that was the Tories regarding our economy. Need I mentioned Liz Truss. 16 years of decline in living standards all thanks to the party in power. Yes, I agree, let’s not let political ideology colour our judgement. Labour are sorting this mess out once and for all.

  6. Exactly what are we paying for .. this is the question you got to ask yourself .. a car park I’ll never use…. Or roads that break my car .. I live in a house that’s falling apart .

    How about I just don’t pay it take me chances total waste of space council ..

  7. CEC Should cut there cloth to suit and not be asking the rate payers to bail them out all the time.
    There’s to much red tape going on and it needs to stop.
    They have wasted as much as ELEVEN MILLION PLUS ON A CAN PARK.
    THIS MONEY COULD HAVE BEEN BETTER USED.
    Money wasted in west street on speed bumps,
    You don’t need speed bumps when the pot holes are like craters.
    Money wasted on people going round spraying white paint round the hole as to identify it,
    As if the holes aren’t big enough in the first place.
    Annoyed rates payer.🧐

  8. At last some good news from central government, now the idiots in charge of cheshire east council need to start doing their job,providing services and balancing the books,now a free cash handout is off the table in the form of higher taxes to us.

    Time to earn your exorbitant pay ,stop wasting money and give us the chance to hold you all accountable for a shocking performance that boarders on criminal.

  9. Was very frightened when CEC approached Central Gov to increase council tax beyond 4.99% and if it had been agreed to go to 9.99% this would have placed a heavy financial burden on myself, as I have no doubt, with other households, given EVERY utility area are placing massive increases. Councils have to be accountable and balance their books. What I find abhorrent is the amount paid to councillors during 2024 in expenses. It was way over ONE MILLION POUNDS and that money, given there is a financial deficit, should not have been taken out by said councillors. Those councillors should be ashamed of themselves, knowing other people and services are suffering. If they had any moral compass, they would refund those monies back.

  10. Hello Dabber Brian,
    This decision not to increase the precept by 9.99% was made by the Labour Government centrally, it was not a decision made by the Council.
    Cheshire East Council have a record of wasting millions of pounds of tax payers money. It is politically dominated my labour and independent councillors.
    The citizens of the UK are being taxed up to the eye balls, GDP in the public sector has fallen dramatically. The prospects for the economy is dismal under this Labour Government.
    I suggest people listen to Simon Roberts Chief Executive of Sainsbury’s Stuart Rose and those who are the leaders within business at national level.
    Inflation will be going up, unemployment up, the benefits bill, tax revenues up. Standard of living down.
    GDP per capita of population down.
    Lets not let political ideology colour our judgement.

  11. This is exactly why Labour were voted in to power. Common sense politics. Tough but fair decision making. Not shying away from what needed to be down.
    The type of leadership Nantwich has been craving for years.
    Well done.

  12. Common Sense at last. It is time for a complete re-organisation of Cheshire East, including a stop to the very wasteful projects that have prevailed. Like the multi-storey car park amongst several others. It is time that Councillors accepted they have a responsibility to the Council Tax Payer. I hope at the next election many councillors are punished by the electorate. Enough is Enough. These individuals should be held accountable and barred from seeking re- election.

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