Cheshire East Council has written to the government to request special permission to increase the council tax for the next financial year by just under 10%.
The Council applied to the Ministry of Housing, Communities and Local Government last week for permission to increase council tax above the 5% limit.
Local authorities can request exceptional financial support to hike council tax above the cap without the need for a public referendum.
Speaking at Children and Families Committee on Monday, 13th January, Councillor Chris O'Leary (Conservative, Sutton) said "On Friday this council submitted a request to the government to be allowed to have an excessive increase in council tax of 9.99% for next year.
"You will be aware council tax is a egressive tax and I wondered therefore if you could confirm that the labour and independent administration will be understanding an equalities impact assessment on that increase in council tax and the impact it will be have on children in low income households, particularly those in Macclesfield which of course has some of the most deprived areas in Cheshire East."
Chair Councillor Carol Bulman (Labour, Middlewich) replied "It isn't a done deal of course it is a request.
"I would say those in Band D properties who can afford to pay extra should at this moment in time. People on lower Bands, like myself I'm in a Band A, it will be £2 or £3 a week.
"Yes that's a child's school dinner. Well it's all relevant, it's all significant in these hard times, but we do have as council, you were asking for comparators with our near neighbours, we do have, a very generous - 100% in some cases, relief for council tax and it doesn't matter what band property you're in you can be asset rich and cash poor so you can apply for that relief. We allow up to £20 million for assisting means tested council tax relief and that is certainly more generous than our neighbours all around.
"These are difficult times so that would be my answer on that."
A spokesperson for Cheshire East Council said: "Cheshire East Council has written to the Ministry of Housing, Communities and Local Government requesting permission to propose the option of increasing council tax above the referendum limit set by government.
"The council is asking for permission, under arrangements for exceptional financial support, to propose an increase of up to 9.99 per cent. This is five per cent higher than the 4.99 per cent increase or 'referendum limit', as set out by government in the local government finance policy statement 2025 to 2026.
"This request does not commit the council to raising council tax. Any proposal to increase council tax would be subject to a decision of full council in February, as part of the budget-setting process.
"An increase of five per cent would be equivalent to £1.72 per week for a band D property.
"It is important that we explore every option to improve financial sustainability and address underfunding and growth in demand. As set out in a recent report to the council' finance sub-committee, Cheshire East's council tax is nearly two per cent lower, on average, than our nearest neighbour authorities and our core spending power is nearly six per cent lower.
"Historical decisions not to raise council tax to the referendum limit over a number of years have had a cumulative impact on our spending power today. Whilst previous decisions have delivered savings for residents, had council tax been increased to the referendum limit each year, the council would have had £35m more this year to spend on essential services, support more families and fix more potholes.
"The council provides a council tax support scheme, which can provide a reduction on council tax bills for those on a low income and information about this can be found on our website.
"If you are concerned about council tax payments, or believe you are eligible for a reduction in your council tax, contact the council tax team by visiting: cheshireeastcouncil.gov.uk/counciltax and completing the council tax enquiry form.
"If you are unable to use our forms, or have any questions about your bill, you can call the council tax customer service team on 0300 123 5013 during normal office hours, 8.30am to 5pm Monday to Friday, excluding bank holidays."
Comments
Here's what readers have had to say so far. Why not add your thoughts below.
The fact that the council have asked permission to raise Council Tax above the referendum threshold without holding a referendum does not mean that permission will be granted; equally, even if permission is granted, a resolution would need to be passed at full council and there is no guarantee of this happening. Whilst appreciative of the dire state of local government finances across the sector, several of the independent councillors (myself included) are deeply unhappy at the suggestion of such a substantial increase without guarantees that Adult Social Care & Children’s Services are going to deliver on the significant savings that they have long been promising.
Kind regards,
Craig
From your comments its clear that CE Adult Social Care and Children's Services have not delivered the promised savings over a period of time and they need to be asked why?
I appreciate that the demands and costs have risen not only for Cheshire East but councils across the country, but any potential savings need to be found rather than ploughing monies into the system, albeit a very important support aspect for Adults and Children.
Central government year on year cuts funding to local authorities, so local authorities have to cut services (including very visible ones like fixing potholes) while at the same time putting up council tax.
So what is happening is that central government is effectively taxing us more, while letting local authorities take the blame for it.
... and I totally agree with him over this ridiculous issue.
Let's not forget that Cheshire East used to get around £56m from central government ten years ago in the form of a revenue support grant, and that grant is now only £400k. I'd challenge any council to deal with such a massive cut in their funding and still maintain services without raising taxes.
Cheshire East have just been hung out to dry, and to collect all the blame! And boy, are they getting it!
I think that this is a fairer (and more accurate) analysis...
https://www.instituteforgovernment.org.uk/explainer/local-government-funding-england