Cash-strapped Cheshire East Council will need about £28 million of exceptional financial support from the government to balance its books for 2026/27, writes Belinda Ryan.
And that’s as well as the millions to be generated from raising council tax by the maximum 4.99% from April.
The council’s corporate policy committee voted though a raft of recommendations to be considered by full council in its budget meeting at the end of the month.
Among these are a 4.99% hike in council tax, which will see Cheshire East’s element of the bill rise from £1,882.04 to £1,975.95 from April for a band D property.
This comes after the government refused the Labour/Independent-run authority’s request to increase council tax by 9.99%.
Conservative group leader Cllr Stewart Gardiner referred to the ‘perilous’ budget situation.
“Yet again, we are having to borrow money to balance our books,” he said.
He said Cheshire East had not taken up the chance to transfer some assets and services to town and parish councils.
He was also critical of the council for not pressing ahead with proposals which had been agreed in the past.
“We sit on a significant asset base in terms of land and buildings,” said Cllr Gardiner.
“We are in a planning period where the government is saying, ‘build, baby, build’, or words to that effect, and I have yet to see one of our sites presented to a planning board seeking outline planning permission for residential development.
“Yet I know… there was an agreement that we should dispose of a set of car parks in the middle of Macclesfield.
“If we do not take action now, we will be here again next year.”
He added: “So, it’s a plea. Please, please, please, can we look at doing more to increase our income, as well as looking at better ways and smarter ways of spending the money that we spend to deliver services?”
Deputy council leader Michael Gorman said Cheshire East “needed to get its act together” in respect of asset transfers to parish councils.
But he said Cheshire East was facing problems other councils weren’t.
“Financial pressure is nothing new to local government, it’s a national issue, but additionally, in Cheshire East, we have the pressure of LGA (Local Government Association) review, Ofsted, and the best value notice from MHCLG (Ministry of Housing, Communities and Local Government),” said the deputy leader.
He then referred to the cash missed out on when the Conservatives ran Cheshire East and froze council tax between 2011/12 and 2015/16.
“Income opportunities were lost, and the current tax base just isn’t comparable to our neighbouring authorities,” said Cllr Gorman.
“Over time that’s cost us £22.6 million, and we’ve just got to face this.
“And we’ve also got to face a real surge in demand-led services, particularly in social care…
“We’ve got an over-75 population that increased by 40% between 2011 and 2023.”
He said there were some real anomalies in the government’s fair funding formula, “and we are not getting a fair deal here”.
The Conservatives, who said they will be putting forward an alternative budget, voted against the recommendations.
A final decision on the council tax rate and the budget will be made by full council at its meeting at Tatton Park at 11am on Wednesday, February 25.
Doesn’t mean it’s going to fall down overnight.
Do some remedial work and postpone new build until finances are in a healthier position.
It could indeed fall down overnight… that’s the whole point. The spend is of course enormous but it’s a no-brainer when one considers that the civil liability for the existing unsafe building could run into millions… especially if someone is killed or injured as a direct result.
We are where we are and the cost of a new building is inevitable.
Simple, sell B&Q they bought with tax payers money for £21 million and go after the non payers who are believed to owe over £20 million.
Cancel the new police station. That will save half of the 28 million in one fell swoop.
You are aware that there is RAAC in the present one, aren’t you?
It needs putting out of its misery never mind £28 million.
Well if there is a war, Labour will get rid of the aged population and CEC’s adult social care costs could be wiped out before the ink dries. We pensioners will be conscripted, standing in line with our walking sticks at the ready, pumping up our mobility scooter tyres, incontinence pads and medicine in our back packs. We will fight them on the beeches, that is if our tyres don’t get stuck in the sand.