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.

Jonathan Follows
Tuesday 14th January 2025 at 7:58 pm
It’s no surprise.
The fact that we pay +10% for -10% of services from our council is not good.
The fact is that 10 years of central government funding cuts is part of the reason.
Justifying the increase on the basis of a school dinner is pathetic.
Pete Wright
Tuesday 14th January 2025 at 9:52 pm
I sincerely hope the Ministry of Housing has the good sense to refuse this outrageous request from Cheshire East.
For those interested in contacting the Ministry, here's a link:
https://www.gov.uk/guidance/contact-the-ministry-of-housing-communities-and-local-government
David Jefferay
Wednesday 15th January 2025 at 12:54 pm
Folks, I am well aware of the concern this is causing and I'll be putting a post out in the next few days to explain what is happening and to get some thoughts from you as Wilmslow residents on it. There is quite a lot to think about and I don't have all the facts at the moment (I was aware that this was an option but I only found out from press reports yesterday that the Chief Executive had requested permission for an increase to council tax above the referendum level).
However, the fact that he has requested it does not mean it will be going ahead as it will require a vote by full council. I (and fellow Councillors) will be asked to vote for or against it. If we vote against, it won't happen.
At the moment I am deeply uneasy about voting for a 9.99% increase but I don't know yet what the alternative options are or the consequences of voting against it. One option, as reported in the press recently, is for the council to borrow "Exceptional Financial Support" from the government, but that would result in £1.5m per year repayments which would exacerbate the financial situation of the council. I know the preference of us all is that we don't increase council tax up by that much but that may well result in the council going bankrupt, a government administrator being brought in and the raise being implemented anyway.
I am also well aware that some residents believe that money is wasted at the council and there is mismanagement of money. There may be some truth in that (and the transformation programme that is being implemented seeks to address it) but it is not the whole picture. If it was, over 50% of councils would not be in the same situation that Cheshire East. The system is broken. Most importantly, it doesn't alter the situation we are in right now and the decision we have to make.
I'll post as soon as I have some facts to give you.
Kind regards
Cllr Dave Jefferay - Wilmslow East
Vince Chadwick
Wednesday 15th January 2025 at 1:08 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.
David Pearce
Wednesday 15th January 2025 at 2:50 pm
So C.E.C. announce an application to increase council tax by 9.99%, For a typical band D property this means going from existing 24/25 C.T. of £1,792.59 to £1,970.06 = increase of £177.47/year.
Pre 2016 basic state pension claimants will, from April see a triple lock increase of 4.1% producing an increase from £169.50 P.W. to £176.45 P.W. = gross +£6.95 P.W. = increase of + £361.40 P.A. to £9,175.40 P.A.
Current tax free threshold - frozen until at least 2028 - is £12,570 P.A. So any pre 2016 state pensioner who has gross taxable earnings of any kind of (£12570 - £9,175) = £3,395 & over will begin to pay 20% tax.
In this case to pay the proposed 9.99% = £177.47 C.T. increase such a pension would have to receive a before 20% tax gross earning of £212.96 P.A.
This additional cost therefore means of the 2025/26 state pension increase of £361.40 , £177.47 will be swallowed up by this C.T. increase. Therefore 51% of a 'triple lock' increase will be taken away by such a C.T. increase for any such pensioner having very modest earnings above the basic state pension. This also means the £177.47 net of tax left from the 2025/6 pension increase would be insufficient to compensate for the 2024 £300 winter fuel payment loss
So other 2025 essential cost of living increases in the pipeline - Water/T.V. licence/transport etc will mean for large swathes pensioners being of very modest means will be hit the hardest by this proposed 9.99% C.T. increase amongst all income groups.
In these cases for properties above band E a 9.99% C.T. increase will wipe out all the net of tax state pension increase from a the 4.1% April adjustment.
For higher basic post 2016 state pensioners the smaller gap below the £12,570 20% tax threshold means an even more rapid erosion to zero of any net benefit from 4.1% April pension increase
Simon Atkins
Wednesday 15th January 2025 at 2:55 pm
I suspect any comment will be preceded by "Well, we inherited such a mess from the previous government..." diatribe.
Bryan Jobling
Wednesday 15th January 2025 at 3:25 pm
Pay tax on my state pension, winter fuel allowance gone and now pay another £30+ per month on my council tax, wha5 next I wonder.
Apparently inflation is now at 2.5%, talk about cooking the books.
Nigel Halford
Wednesday 15th January 2025 at 5:48 pm
Another example of CEC applying another tax to cover their failures rather than reduce their expenses. Slapping 10% on Council tax doesn’t take into account the income of the band holder. There are many elderly people who through no fault of their own live in band E,F and some G homes where a 10% increase will break them. They bought their homes 30,40 years ago most now are widowed or widows living on small incomes. Not able to get additional support ( don’t mention pension credits) this and many other taxes will now force people to have to sell up in the twilight of their lives. Of course once again those on welfare won’t suffer as it’s all covered. If you want to raise taxes base it on household income not just a banding designation. Many elderly people don't want to be a burden on social care, their families try and help to maintain their dignity and carry the cost. You will push people over the edge and find they can’t cover their bills. I know Labour is all about class wars and bringing everyone down but surely you can be a bit more imaginative than just slapping 10% on council tax.
Ryan Dance
Wednesday 15th January 2025 at 8:58 pm
Outrageous. Absolutely outrageous if this request is granted. Incompetent, wasteful, inefficient, bureaucratic, lazy, corrupt, work shy, pen pushing, interfering, useless council. Cut your cloth accordingly and stop treating the good folk of Cheshire east as a cash cow to backfill financial, operational and general incompetence.
Simon Worthington
Thursday 16th January 2025 at 5:26 am
Good grief!! For once Ryan we are in full agreement. I could add a few more adjectives but would no doubt fall foul of the censor.
Adult social care, children with special needs or in “poverty” are a national issue.
Councils need to band together and cooperate to force full government funding for such!!
John Featherstone
Thursday 16th January 2025 at 9:12 am
when the government is spending 14 millions pounds a day (approx) on the scumbags that are coming across the channel no wonder they cant look after there own people absolute disgraceful my fathers generation are turning in there graves
Alan Brough
Thursday 16th January 2025 at 10:12 am
I also agree with Ryan Dances' assessment.

I don't see how the paying public can be continually asked to pay more for less. The failures at CE Council need urgent investigation. They can't provide acceptable levels of Social Care. They can't maintain roads and pavements in a safe condition. They close Libraries. They close Recycling Centres and either charge extra to dispose of certain types of waste or reduce the frequency of collection. The Planning system is a lottery - thousands of new homes have been built across Cheshire East to the extent that School, GP & Dental Practice & Care Home places are hard to find. Those new homes will all generate additional Council Tax revenue.

Meanwhile, they pay eye-watering salaries to their Executives because (they say) you have to pay to attract the talent. Look where that "talent" has got them.
Nick Jones
Thursday 16th January 2025 at 12:51 pm
I think the mood of this is clearly captured by previous commentators and CEC are not learning the lessons of their recent history. They forget that ‘the voters giveth’ and they similarly ‘taketh away’ … CEC cant afford some of the unjustified execs salaries/ packages it has… Root and branch clear out needed… With the identified funding gaps, experienced by Cheshire West and Warrington, One exec team and management structured with a much reduced numbers of Councillors, Staff, sale of public buildings, assets from 3 separate authorities into one, on paper sounds sensible and our current councillors clearly support devolution on such a grand scale .. Council leaders express support for Government's devolution plans - wilmslow.co.uk
How this amalgamation.. and proposed punitive 10% further tax imposition ‘ raises living standards and improves public services ‘ I’m not sure. That would surely not occur for some time as its more likely to create a blanket of obfuscation and political colours blame for years to come as the fiscal chicanery and demands continue…Meanwhile the tax paying public get even less for their heard earned cash... As prime minister Jim Hacker once said “..this government is here to govern, not merely preside like our predecessors did. When a country is going downhill, it is time for someone to get into the driving seat, and put his foot on the accelerator “.. l'existence précède l'essence.
Pete Wright
Thursday 16th January 2025 at 3:34 pm
Perhaps the best option would be to stop kicking the can down the road, forget "emergency borrowing" which only compounds the problem and for the council to issue a "Section 114" notice so the issues have to be confronted head-on.
There would be no more spending of imaginary money the council doesn't have and a new budget would have to be submitted for approval.
Expensive initiatives such as employing cost-saving "consultants" would quite likely get the axe in favour of services that council tax payers actually want.
It may be that the budget is impossible to balance partly due to central government requirements (housing the homeless & asylum seekers, social care etc) but it seems clear it can't go on like this with residents asked to dip into pockets repeatedly for an ever shrinking service.
Gary Weir
Friday 17th January 2025 at 6:03 pm
Personally I’ve submitted a couple of surveys in the past 18 months with some suggestions for the Council as to how they might cut their cloth……

Having previously worked for a large business it was a fairly regular occurrence (every 2-3 years) when the red pen would come out and we would have to cut costs by 10-15%.

It can be done, so please don’t take the easy way out and raise all our taxes…….
Jonathan Follows
Saturday 1st February 2025 at 12:42 pm
Windsor and Maidenhead want a 25% increase in council tax.
Bradford wants a 14.98% increase.
Newham and Birmingham want a 10% increase.
Slough wants a 7.99% increase.
Somerset wants a >5% increase.
These don’t legitimise what our council wants, but at last demonstrate the parlous state of local government finances for whatever reason - incompetence, overspending or central government.
Jonathan Follows
Monday 3rd February 2025 at 7:45 pm
The government has today refused the request to increase Council Tax by almost 10%.
Pete Wright
Wednesday 12th February 2025 at 9:25 am
To clarify: the government refused increases over the 5% limit for all councils deemed to be already charging residents more than "average" for "comparable councils".
Implying CEC is already asking tax payers for too much and need to get their affairs in order.

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