Cheshire East requests permission to increase council tax by nearly 10%

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."

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Comments

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

Andy Brown
Tuesday 14th January 2025 at 2:02 pm
Daylight robbery.
Craig Browne
Tuesday 14th January 2025 at 7:07 pm
Dear all,

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
David Carey
Wednesday 15th January 2025 at 10:17 am
Craig thanks for the update.
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.
Vince Chadwick
Wednesday 15th January 2025 at 1:09 pm
It's just more taxation from central government, but central government is hiding behind local authorities.
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.
Tony Haluradivth
Saturday 18th January 2025 at 6:25 am
Relieved to see that our elected Councillor will be voting against this diabolical proposal. From my understanding it is the Chief Executive (an unelected official) who proposes this. A man who moved up from running Swindon Council (my friends in that part of the world don't speak too highly of him)..and a man on a high income which rises each year. How does this unelected official feel about those on fixed income affected by this? The only consolation is that Somerset Council tried this audacious move last year and the Government said NO but as we all know it was a different Government. I hope that many of our elected officials vote like Craig against this.
David Hadfield
Sunday 19th January 2025 at 8:55 am
A great comment from Tony Haluradivth (above)
... and I totally agree with him over this ridiculous issue.
David Hughes
Tuesday 21st January 2025 at 3:52 pm
I very much hope Councillors vote to raise the level of council tax at the upper bands, ideally adding an additional band to get around the ridiculous situation where someone in a £400k house pays the same amount as someone in a £5m mansion. I don't want to see council services cut still further. I suspect those who complain about more council tax are equally quick to moan about the state of the roads, lack of gritting, etc.

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.
Vince Chadwick
Tuesday 21st January 2025 at 5:45 pm
David Hughes, if those numbers are correct (especially if not adjusted for inflation) then it confirms my earlier post that the cut in services, and the potholes, are really the direct result of massive cuts by the Tory government.

Cheshire East have just been hung out to dry, and to collect all the blame! And boy, are they getting it!
David Hughes
Wednesday 22nd January 2025 at 9:02 am
Hi Vince. Yes, the actual amount of the RSG in 2013-14 was £55.8m. The equivalent amount in the current financial year is just £414k. So when our MP has her normal dig at Cheshire East, let’s not forget it was her government that landed our (and many other) local authorities in this position.
Alan Brough
Wednesday 22nd January 2025 at 11:42 am
David,

I think that this is a fairer (and more accurate) analysis...

https://www.instituteforgovernment.org.uk/explainer/local-government-funding-england

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