Cheshire East Council proposes to increase council tax by 4.99%

Cheshire East Council has published the documents that set out spending plans and priorities for the organisation over the next four years, including proposals for investment, savings and raising council tax by 4.99 per cent

Cheshire East's cabinet will discuss the plans at their meeting on 2nd February and will make recommendations to a meeting of full council on 17th February when the documents will be considered for formal approval.

The documents, initially published in draft last year, have been amended as a result of a public consultation and in the light of the ever-developing Covid-19 pandemic and the changing financial position for the council. This follows confirmation of a one-year financial settlement for councils by the Chancellor of the Exchequer at the spending review in December.

These announcements included proposals to increase the spending power of local councils largely comprising of council tax increases, with confirmation of the permitted level of council tax increase for 2021/22 of 4.99 per cent.

Councillor Amanda Stott, Cheshire East Council cabinet member for finance, said, "These are unprecedented times. This budget has been one of the most challenging to prepare. The two documents published today set out our plans for the next four years, giving us much-needed focus and direction at a time of great uncertainty and change in the face of the pandemic.

"We have listened to your feedback and responded to the changing situation to propose a balanced budget for the next four years. I am pleased that this is the first time ever we have put forward a balanced budget for a four-year period. We have also produced an ambitious corporate plan setting out our priorities for the same period.

"We are increasing our spending in people-based services by more than £12 million over the next four years. This will help to modernise and meet the demand for services such as social care, mental health and young people with additional needs.

"The council will also manage capital investments of £0.4 billion over the next four years on roads, schools, growth and enterprise and critical ICT services.

"At the same time, we are seeing a further reduction in government grant funding. We are balancing this with a mixture of cost savings and efficiencies, increased income from council tax, and making sure that we recover costs for the services for which we charge directly.

"In our draft consultation MTFS, we reluctantly included proposals for a number of significant changes to services. During the consultation process we have been able to analyse the government spending review and listen to feedback on our proposals from our residents and partners. We have been able to re-evaluate our proposals in the context of the ongoing pandemic and the value people place on our key services.

"Savings in our children's services have been significantly reduced and we will provide funding to explore opportunities to significantly review our approach to services for young people. We will also fund our commitment to move towards being a carbon neutral council by 2025.

"Other savings, we think, need more time to plan to achieve the priorities of the corporate plan in a post-Covid environment, so we have adjusted the budget to reflect that too. This is affordable by retaining some difficult but achievable savings, in addition to raising council tax, in line with government expectations, by 4.99 per cent."

Councillor Stott added: "Councils face very difficult choices and must strike a balance between protecting vital local services and keeping council tax rises to a minimum. We know that the proposed 4.99 per cent increase in council tax for 2021/22 will be a concern for many residents.

"This equates to about £1 per week for the average household. We are looking to reduce the impact of this rise on lower income households through changes to our council tax support scheme. Beyond 2021/22 we are proposing smaller increases in council tax of 1.99 per cent.

"This is part of a four-year balanced strategy, reflecting preferences voiced through consultation responses, of increasing council tax, implementing service efficiencies and increasing income from fees and charges. This approach will allow us to maintain sustainable services, giving greater financial certainty and retaining our commitment to carbon reduction.

"As the pandemic continues, and we look beyond to the council's role in helping the borough, its businesses, communities and residents recover, it is essential that we put the council onto a secure financial footing and have a clear vision from which to build."

The medium-term financial strategy and corporate plan are published with the agenda for the cabinet meeting on 2 February, including reports on consultation responses and feedback and a full list of proposals for budget growth and savings.

Find details of both meetings, including, agendas, reports and how to access the meeting as a member of the public remotely on the calendar of meetings on the council's website.

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Comments

Here's what readers have had to say so far. Why not add your thoughts below.

Andy Brown
Tuesday 26th January 2021 at 1:42 pm
Schools closed, businesses trashed, a lot of the private sector taking a 20% but here we are with the council trying to extract the maximum from the beleaguered tax payer.

It would be nice to see the council with its hands in its own pockets rather than our own.
Alan Brough
Tuesday 26th January 2021 at 2:49 pm
@ Andy Brown,

I wouldn't mind quite so much if the services we received expanded and improved incrementally with the money we pay - but the opposite is true, the more we pay the more they cut local services.

It's like dealing with the Chicago Mob in prohibition days - they make you an offer you cant refuse....this year it's 4.99 percent. The difference is that the Mob got things done!
Hilary Pinnock
Tuesday 26th January 2021 at 3:11 pm
If they'd even just get the roads sorted, it's be a start worth the increase.....
Graham Morgan
Tuesday 26th January 2021 at 3:19 pm
The state of the roads and pavements are a complete joke. It’s like we live in a 3rd world country! I don’t how CE council can morally justify any increase above inflation - there services are poor and they have historically misused the funds that they had.
David Hadfield
Tuesday 26th January 2021 at 3:43 pm
Wouldn't it be a nice gesture if each of the Cheshire East Councillors took a 20% salary reduction so they could have some idea how others are coping ?

Instead, it's all left to the Private Sector to take salary drops in this epidemic.

As has already been said, if we saw a benefit in the roads maintenance programme and other improvements, then maybe a 4.99% Council Tax rise could be justified.
Otherwise, it's an insult to taxpayers !
Peter de la Wyche
Wednesday 27th January 2021 at 6:25 am
Could be a clue here as to why council tax has to rise if service cuts are to be minimized

"We are seeing a further reduction in government grant funding*

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