Cheshire East Council's Cabinet has backed several financial reports which include a proposal to increase council tax by 2.99%
This follows a consultation period on initial proposals for how the council could target resources more effectively and save money to achieve a balanced budget – while also setting out a strategy that can achieve a sustainable financial position in the medium term.
It is now proposed to increase council tax by 2.99 per cent, which would equate to an extra 78p per week to the average household bill. A Band D property bill would rise from £1,404.28 to £1,446.27. One per cent of the proposed tax rise will be ringfenced to help meet financial pressures in children's services.
The proposed revenue budget is balanced for 2019-20 with net revenue spending of £281.2m with total capital investment of £450m identified over the next three years.
An estimated £270m over the next three years on maintaining and improving our highways.
Cheshire East invited feedback from residents, businesses, councillors, staff, town and parish councils and other stakeholders to inform decisions.
The provisional budget include:
● An increase of £13.1m in overall net revenue spending on services;
● A reduction of £2.8m in government grants;
● An increase of £10.9m in council tax receipts (including from housing growth and previous year surplus); and
● An increase in business rate income of £5m.
Councillor Paul Bates, Cheshire East Council Cabinet member for finance and communications, said: "These reports, backed by cabinet's decision today, outline how the council will continue to build on the sound achievements of recent years and maintain robust and resilient overall financial health, performance and value for money.
"This financial year once again presented a number of challenges, in common with all local authorities, as issues such as inflationary pressure of £23.3m and rising demand in care services for children in Cheshire East were compounded by falls in government funding – including a £5.4m reduction in revenue support grant. Against this background, Cheshire East continues to effectively commission services through its 'best fit' model of service providers.
"Our local response to these pressures continues to focus on innovation and creativity with a clear emphasis on further improving efficiency, productivity and establishing more-effective local delivery of services.
"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 as the council's reliance on locally-generated income increases.
"In the final year of the Corporate Plan 2017-20, the council is able to demonstrate the ongoing achievement of positive outcomes for local people. Education achievement rates for pupils in Cheshire East remain as one of the highest levels in the country and social care for children and adults are receiving higher levels of investment in the medium term.
"Infrastructure projects continue to unlock land and housebuilding numbers are exceeding targets. Employment is high and the number of businesses in the borough is higher than Manchester.
"Our recycling rates are in the top 10 per cent of all local authorities and our much-used libraries are in the top five in the country – while life expectancy for Cheshire East residents is also higher than both regional and national averages.
"Since local government reorganisation, the cumulative increase in council tax by Cheshire East Council is significantly lower than inflation and is among the lowest of any unitary authority in England. Cheshire East is simply a great place to be."
Alex Thompson, head of finance and performance, said: "Against a challenging financial backdrop, it is pleasing to note that the council has continued to perform strongly, delivering positive outcomes in each of the six areas identified by the corporate plan. The costs related to increasing demand for services are being mitigated by the council's success in supporting local development and manging the costs of providing services."
Cllr Bates added: "The medium-term forecasts show the extent of the financial challenge ahead but we are helping to address this by setting a balanced budget – and I am confident and determined to deliver for local residents and do everything I can to maintain Cheshire East as one of the best places in the North West to live, work, visit and do business."
Cheshire East Council is the third-largest unitary authority in the North West, responsible for delivering more than 500 services, supporting more than 370,000 local residents.
The budget and council tax for 2019-20 will be decided by a vote of elected members at the meeting of full council on Thursday, 21st February.