Cheshire East councillors have narrowly approved its budget by 42 to 37 votes, which includes a 4.99% hike in council tax, writes Belinda Ryan.
The Conservatives, Liberal Democrats and non-grouped councillors – including former Labour member Laura Smith – all voted against the cost-cutting budget at full council.
All four Nantwich CEC councillors voted for the budget, including John Priest (Lab) and Geoff Smith (Lab) of Nantwich South and Stapeley ward, and Arthur Moran (Ind) and Anna Burton (Lab) of Nantwich North and West ward.
Former council leader Rachel Bailey (Con, Audlem ward) said residents were paying for the financial mismanagement of the Labour/Independent administration.
Labour councillors said councils of all political colours were in a financial mess because of the actions of the Conservative government over the past 14 years.
Council leader Nick Mannion (Lab) said Cheshire East’s financial position was improving because of actions the council had taken, and the funding gap of £28 million predicted last summer is now forecast to be just over £18 million at the end of this financial year.
Cllr Mannion told the meeting: “The budget for 2025/26 has almost certainly been the toughest that this council has ever had to prepare.
“We were sinking last summer. We are now stable, but there is much work to do to set the ship Cheshire East Council underway again.
“We still have a massive amount of hard work ahead of us before we can say with confidence that the council is returned to a financially sustainable position…
“We must not, we dare not, relax our focus through the acceleration of the delivery of our transformation plan.
“There are many tough decisions ahead for our service committees to make.”
Deputy leader Michael Gorman (Ind) said the particular issue for Cheshire East has been the financing of statutory children services and adult social care services, ‘the demand for which has exploded in recent years and now, in the case of Cheshire East, accounts for more than 70% of our revenue spend’.
Cllr Gorman said: “To balance the books in the short term, cuts have been made in place service committees, including the closure of tips, the reduction of library hours, green bin charges and the introduction of parking charges.
“These decisions have been painful and challenging, but have been instrumental in keeping the council out of S114 [effective bankruptcy].”
Referring to the £25.3 million exceptional financial support agreed by the government this month, Cllr Gorman said: “Let us be very clear, £25 million EFS borrowing helps, but borrowing certainly isn’t the long-term solution here, the council will need to continue the transformation program, both to reduce spending and increase income.
“It’s imperative that we deliver against the budget that we set today.”
Conservative group leader Janet Clowes said the council was facing an £18 million overspend this year “in large part due to the failure to deliver last year’s MTFS budget lines”.
She told the meeting: “This MTFS (medium term financial strategy 2025-2029) is wholly dependent on receipt of exceptional financial support totalling £43m to date.
“This MTFS also identifies a potential additional EFS requirement of £22m for 2026/27.
“This latter sum was not approved by government last week, and so, whilst on paper, there is a balanced budget for this year, the MTFS before us for the identified period is not yet balanced.”
She added: “We are here today to discuss the budget for the year 25/26 and thus we have to express our deep concerns about its deliverability.”
Liberal Democrat leader Reg Kain said he would not be voting for a budget which is ‘jam tomorrow’.
“This budget, in my mind, and the way that it’s been structured, will not solve this council’s problems.
“All I’m hearing is transformation, which is another word for cuts,” said the Alsager councillor.
Cheshire East’s decision to raise council tax by 4.99% while cutting vital services is yet another example of a failing system that expects residents to pay more and get less. While it’s true that councils across the country are struggling after years of government underfunding, that doesn’t excuse poor decision-making at the local level.
However, let’s be absolutely clear—this financial crisis didn’t happen in a vacuum. The root cause of Cheshire East’s problems, like so many councils across the country, is 14 years of Conservative government policies. They have systematically underfunded local authorities while shifting more financial responsibility onto councils without giving them the means to cope. The Tories have squeezed council budgets, forcing them into impossible choices—cut services or raise council tax.
Now, after years of damaging policies, Conservative councillors want to act as if they had nothing to do with it. They blame Labour and Independent councillors for making tough decisions, yet it was their party in Westminster that created this mess in the first place. Their outrage now is pure hypocrisy.
That said, this budget isn’t a real solution—it’s a short-term fix that leans heavily on borrowing rather than addressing the root of the problem. The Labour/Independent administration claims to be stabilising the council’s finances, yet they’re relying on government Exceptional Financial Support (EFS) to plug the gaps. That’s not stability, it’s a temporary lifeline. And with another £22 million potentially needed next year, the financial future of Cheshire East still looks deeply uncertain.
Cuts to library hours, waste collection charges, and increased parking fees will hit ordinary residents the hardest. Yet, instead of looking at real reform—such as tackling inefficiencies and ensuring better value for money—the council continues to push the burden onto taxpayers.
There needs to be a long-term plan that prioritises sustainable funding, better financial oversight, and a fairer approach to balancing the books. But let’s not forget who caused this crisis. The Conservatives cannot be trusted to fix the problems they created—no matter what they say.
The public should not have to keep paying the price for financial mismanagement. Cheshire East deserves better.
Pay more for less ,due to inefficient running of the council and countless overspending on projects, some of which were totally inappropriate and not needed, the list of both bad decisions and poor management is endless.
We the electorate need to hold these people to account ,please use your vote in the future, this lot depend on most of you not bothering.
Cheshire East Council are by and large in a financial mess due the incompetence of the Councillors, Directors and Senior Mangers. The money that has been wasted is beyond belief. They could not organise a party in a brewery. We need Elon Musk and his DOGE Department to be brought into life in within Cheshire East. Lets live in hope that the new Financial Director can apply some common sense. It is a total disgrace. The only people these incompetents are kidding, are themselves. I hope in the elections in May that get punished by the Citizens of Cheshire East