Cheshire East announces "the best budget in the North West"

peterraynes

Cheshire East Council is planning to freeze Council Tax for the next two years – while increasing spending on services for vulnerable adults and boosting investment on roads and infrastructure.

The authority today (February 26th) voted to freeze Council Tax for a fifth year running in 2015/16. Cheshire East Council Leader Michael Jones also revealed the authority's intention not to increase Council Tax in 2016/17 too – which would mean six consecutive years without any increase.

It is the first local authority in the country to announce this move and means the Cheshire East Band D Council Tax will remain unchanged at £1,216.34.

The budget and financial reports voted through by full Council today show that medium-term finances are "in great shape" and set to generate a small budget surplus, for the third year running, of about £0.5m in 2014/15.

Cheshire East Council Leader Councillor Michael Jones said: "This is the best budget in the North West and one of the strongest in the UK.

"Cheshire East Council is demonstrating once again how local authorities can cut costs via innovative ways of working and a listening approach that puts residents first.

"We care about the pounds, the pennies and the people. And I am delighted and proud that there will be no Council Tax increase for our residents for a fifth consecutive year, despite having our revenue support grant from central government cut by £9.66m or almost 20 per cent.

"However, we want to go further and continue that freeze up to 2017 – attracting people, jobs and business into Cheshire East and bolstering its position as the 'best place to live' in the North West, with a strong and resilient economy."

Annual Council spending is more than £750m, with a proposed balanced net revenue budget of £264.7m for 2015/16. This includes meeting a target net saving of £7.7m.

Under the Council's medium-term financial strategy (2015-18), additional spending on key frontline services is also earmarked – with £6.5m extra for highways improvements and £1m extra spending for adult social care. A capital programme also plans £0.5 billion of investment over three years.

With no new planned borrowing in 2015/16 and external debt being reduced by a further £8.5m, Cheshire East now has less debt than it did when it was created as a unitary authority in 2009.

Government grants have reduced substantially since 2009, leaving many local authorities facing 'gaping holes' in their accounts. Councils have also taken on more responsibilities, such as public health and Council Tax support.

In response, Cheshire East Council has changed its operating model to provide what it describes as "an innovative best fit approach" to local delivery of services and has created a range of wholly-owned arms-length companies.

Cllr Jones added: "This is the right way for a modern Council to reduce waste and deal with the twin pressures of meeting rising demands while reducing costs.

"We now do far more with a lot less and that's the radical way we need to be – putting residents first and delivering real value for money to local taxpayers."

Councillor Peter Raynes, Cabinet member in charge of finance, said: "Our financial performance shows that we are, yet again, firmly in control of our budgets both now and in the medium term.

"Our response to funding pressures will be based on innovation and creativity with a continued focus on improving efficiency, productivity and more effective local service delivery. Our ability to create the best conditions for private sector investment, economic growth and prosperity will be critical to the continued success of the Borough.

"Our three-quarter-year review demonstrates that the overall financial health, performance, resilience and value for money at Cheshire East are strong, despite taking £50m out of our costs base from 2011/12.

"We have consistently achieved savings via efficiencies, removing management costs and duplication and through a planned programme of asset disposals – in short, we are working smarter with the resources we have.

"This approach has protected funding to frontline services. The Council's robust financial position reflects its improved governance, innovative delivery approach and effective stewardship of public money – and shows our focus on putting residents first."

The Council announced that the projected £13m funding gap in their finances for 2016/17 will be closed by some activities which are already under way. These include:

● £3.4m from money set aside for business rates appeals, which have been settled;

● £1m expected from growth in the business rates tax base and from shared benefits of collaboration with Greater Manchester;

● £1m from new jobs and new homes that are increasing the Council Tax base;

● £2m return on the 'invest to save' schemes in the capital budget;

● £2.2m from government grants, such as the New Homes Bonus scheme;

● £1.7m from eliminating growth through efficiency savings of 0.7 per cent; and

● £2m from reducing the impact of inflation on the Council's budget.

Photo: Councillor Peter Raynes, Cabinet member in charge of finance.

Tags:
Cheshire East Council
Advertisement
Advertisement
Advertisement
Advertisement

Comments

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

Dave Cash
Thursday 26th February 2015 at 5:27 pm
This 'freeze' does not include the increases already announced by Cheshire Police & Fire services
Graham Jackson
Thursday 26th February 2015 at 6:49 pm
You have saved Jack - £3.4m screwing over business that generate income tax, corporation tax etc. i.e you have done nothing to reduce general taxation to increase growth.

£1m expected from growth, is not actual tax receipts, in the business rates tax base and from shared benefits of collaboration with Greater Manchester.

£1m from new jobs and new homes that are increasing the Council Tax base - where the figures for the jobs, what companies?

£2m return on the 'invest to save' schemes in the capital budget - shows us the returns versus capital invested in percentage terms and over the number of years.

£2.2m from government grants, such as the New Homes Bonus scheme; - is not a return but a subsidy from general taxation.

£1.7m from eliminating growth through efficiency savings of 0.7 per cent; and - as a percentage of your overall budget this is rubbish - £2m from reducing the impact of inflation on the Council's budget - this laughable, a quantitative figure compatible outside the councils control. How much did they pay to hedge this figure.

Reading this the savings have been made by expected and general invest schemes and potential hedge growth.

There are no figures to actually prove savings, cost benefits, reductions in real cash terms at tax payer levels - until there are actual reductions in real terms in local taxation, staff numbers, increase in performance visa/ve staff performance etc. these numbers mean nothing.
DELETED ACCOUNT
Thursday 26th February 2015 at 7:14 pm
Cheshire East is balancing its budget by Engine of the North selling off assets. That is a short - sighted policy which is merely postponing the key issues.
Chris Wigley
Friday 27th February 2015 at 1:11 pm
There will be real savings in 2015/16..................not having to pay for a report on the Lyme Green fiasco, or the hearings and sacking of all the senior management of Cheshire East because of the lack of systems that allowed this to happen. Perhaps also the currently rejected Local Plan which cost £3 million will have a further sum provided for in 2014/15. I pity the rest of local government if Michael Jones and his crew are up for a local government award.
Nick Jones
Tuesday 3rd March 2015 at 2:27 pm
Is this why Cheshire East has now agreed to pay itself bonuses up to £10,000 ?
Independant Cllr Brendan Murphy would appear to have had his hands full contesting this motion, Council leader MJ allegedly told last week’s council meeting that Cheshire East paid some of the lowest executive salaries in the country and wanted to keep its top officers.

Unfortunately Ive not been able to locate the minutes at this stage, but lets just remind ourselves 'top officers'...... Lyme Green , Local Plan , Parking , Allotments to Car Parks, Adlington ROad.......etc etc etc........
No wonder MJ withdrew from the local Govt 'pat-on-the-back' awards !
Cash is King as they say...... Electorate ? What Electorate !!
Terry Roeves
Wednesday 4th March 2015 at 5:18 pm
Jackie makes a good point. However, CEC are to make up the funding gap for the redev'l of Macc town centre, now that Debenhams have pulled out.
UK leads the world in on line shopping. Makes one wonder about the future of stores hereabouts.
Have heard of young local resident families, who almost exclusively shop on line, for food, clothing, electrical/electronic good AND no visits to shops. Van deliveries and returns only add to our traffic congestion.
CEC need to sell off all of their sites. They stifle private enterprise and muddy the planning process. How can they ever be even handed? And do they understand the paradigm shifts occurring? I think not.