The government have issued Cheshire East Council with a Best Value Notice confirming it has significance concerns regarding the authority's financial sustainability and medium term financial strategy.
The notice also expresses concerns regarding the Council's "leadership capacity, governance, scrutiny and culture".
Whilst the Ministry of Housing, Communities and Local Government (MHCLG) acknowledges the steps already taking to address issues at the Council, ministers remain concerned as to Cheshire East's capacity to comply with its best value duty under the Local Government Act 1999.
The formal notification also outlines the areas where it expects the Council to make further progress over the next 12 months, which include "Develop and agree a single overarching improvement plan which addresses recommendations from the council's various external reviews" and "Continue taking urgent steps to improve its financial sustainability, by delivering against its agreed transformation plan".
James Blythe Deputy Director, Local Government Stewardship and Interventions stated "The council has engaged constructively with the department about the challenges it faces, including during the process for exceptional financial support. However, given the seriousness of the issues identified, and the pace to deliver the level of change required I am setting out the department's expectations of the council in providing assurance of progress."
It was confirmed in February that Cheshire East Council will receive exceptional financial support of £25.3 million from central government, enabling them to borrow money to effectively avoid bankruptcy,
Rob Polkinghorne, chief executive of Cheshire East Council said, "The council has received a letter from Jim McMahon OBE MP, Minister of State for Local Government and English Devolution, issuing us with a non-statutory Best Value Notice.
"This means that while the government recognises the steps we are already taking, it requires further assurance of our ongoing improvement and work towards financial sustainability.
"The letter states that the council is expected to continue leading its own improvement and is requested to engage with the department to provide assurance of progress and respond to the expectations set out in the Notice which are areas we are already aware of and working hard to address.
"We have made significant progress in the last year with a shared understanding of the challenges and putting the building blocks in place for sustainable improvement including the transformation plan, new Cheshire East plan, budget and Medium-Term Financial Strategy albeit with the need for Exceptional Financial Support."
Leader of the council, Councillor Nick Mannion, and Deputy Leader Councillor Michael Gorman, added, "We are confident in our transformation and improvement plans – while we have set ourselves a challenging agenda, we are making good progress.
This is reflected in the report from the Local Government Association (LGA) Peer Challenge revisit which we are also able to share today. The report acknowledges the council has delivered against key aspects of their recommendations, while recognising that we know ourselves and the improvements we still need to make."
"The LGA stated: '...it is clear that there is a significant appetite and energy for reform from senior political and managerial leaders in the organisation, and that this is linked to a wider ambition for improvement.'
"Ofsted, in their recent monitoring visit report, also recognised positive improvement, stating, 'There are now robust governance arrangements in place to support oversight of progress in accordance with the revised improvement plan. Political support for the new senior leadership team is strong, and the children's services budget has been aligned to the new strategic priorities across the service. This investment has resulted in strengthened capacity across the service at a senior and frontline level."
"We must build on this momentum. Continuing to drive improvements, delivering what we have committed to, and supporting each other to deliver at the required pace is critical."
Mr Polkinghorne added, "We set up our independently chaired assurance panel in August 2024, to support and guide our transformation and improvement activity as part of the sector led improvement offer from the LGA. Work with the panel will be strengthened to ensure we continue to improve.
"We will also continue to report on our progress to councillors through committees including Finance Sub and Corporate Policy Committees in June and Full Council."
The Best Value Notice will be reviewed after 12 months.
Comments
Here's what readers have had to say so far. Why not add your thoughts below.
Previously, councils would either go into S114 (bankruptcy) or not. It was all or nothing as the government would only step in when it was too late and the council was insolvent.
However, given the scale of financial issues at councils all across the country, the government has now changed the process. There is now a set of steps to ensure that S114 is only a last resort and not the only resort as previously was the case. For example, the Ministry are visiting Warrington council because they must have more concerns about how their changes are being implemented.
Cheshire East are only being asked to update the ministry though, so they can see if it is on the right path. If it is, then they will tell us all. If it is not, then they will say what needs to be done. That seems a common sense approach to me, so this notice is to be welcomed.
Best regards
Cllr Mark Goldsmith
Residents of Wilmslow
As 1 of only 3 councils across the country who've been issued a "Best value Notice" in 2025 (so far), despite almost all councils facing financial issues, is it really only a "routine matter"?
The specific notice to the CEC states (on the government website) there are "Significant concerns about the council’s financial sustainability and medium-term financial strategy" as well as "Concerns around leadership capacity, governance, scrutiny and culture".
It doesn't sound particularly "routine".
https://www.gov.uk/government/publications/cheshire-east-council-best-value-notice-may-2025
Rather than getting on with the jobs in hand.
Time to elect a new lot without agenda (the council clearly does have an agenda - to save themselves) and want the best for a diverse county. Some very poor people live here and some very rich people.
You’ve one job.
Do it. Deliver.
The ministry have said these council notices are the "first of many".
Therefore, the small number is purely a timing matter as many more councils will be be getting them.
They are told that they need to manage their budget by Whitehall and they are told that there are certain services which they legally must provide - social care being about 70%+ of the budget; but delivered to less than 50% of the population. The cost for delivery of this rises but the income doesn't increase at the same rate. So CEC ask the government to increase Council Tax to pay for the difference and the government say "no, you already don't have enough money to balance your budgets, so why should we let you have any more! What you need is a loan from us for that amount, which you can pay back over 20 years with interest, meaning that we can balance our books better which benefits the economy as a whole! Look how community spirited the wealthy Cheshire set are!" - But we aren't the wealthy Cheshire set!
The government already takes 70% of our business rates and charges CEC business rates on council car parks - so when we all moan about the cost of parking, bear in mind that CEC is charged business rates on that by the government, who give that money to other areas. Effectively the government is using CEC as a debt collector to fund the rest of the country by charging us!
So what can CEC do to drive their costs down? Reduce employees pay or alter working arrangements? No - national terms and conditions prevent that. Look at how it went with Birmingham - bankrupted by the Trade Unions rightly pressing to settle years old equal pay claims, and then further pressed into debt by the same unions representing the bin workers.
Could CEC cut the pension payments? No again, not in their control. Could they cut staff? Yes, but redundancy payments, possible strike reaction and ultimately the lack of people to do the job prevent that being viable. Could they cut services? Some can't be cut, and we all justifiably moan when other services are cut.
In my mind the system is wrong, but Whitehall prefers it that way - the more they can blame local government, the less flack they get!
Are you implying it's purely coincidental that CEC happens to be one of the first to receive this 'warning'?
I doubt it.
Perhaps by applying to increase council tax even higher than was permitted - and as we know, CEC's application was rejected - the government decided to take a closer look and didn't like what they saw.
Oh, so that’s alright then?
The fact that CE Council is failing miserably against any ( proper) measure, and is held in complete contempt by its long suffering “customers” is acceptable to you because other Councils might be just as bad?
I can think of 550 reasons why I wouldn’t trust anything that fell from the mouth of a CE Councillor.
If there ever was a time to “shut up and put up” it is now.
It is their poor leadership, indecisiveness and lack of fiscal responsibility that is seeing Cheshire East struggle.
And the worse thing is, they are taking residents for fools, but suggesting this is “good thing” to happen.
Wilmslow Town Council +50%
Cheshire Fire Authority +5.5%
PCC For Services Provided By Cheshire Police +5.3%
Bottom line +5.82% for me
The politicians always quote the figure which makes them look better
"Elected onto Wilmslow Town Council in May 2019 at the age of 18. Hannan's current positions include: Deputy Representative on the Manchester Airport Liaison Group and member of the Community and Order, Finance & (formerly Planning) committee. " and I believe that you were a strong advocate of Liz Truss being our Prime Minister.
So, given you appear to be on a council with Cllr Goldsmith and have support for arguably the most damaging Prime Minister this country has seen, could you answer the following:
- Have you raised your concerns to Cllr Goldsmith during your attendance at recent council meetings?
- Do you consider that the decisions of the Truss government may have had some impact on County Councils?
Whilst I'm not saying that CEC are perfect in any way, I just wonder if you may be sitting in a greenhouse throwing some rocks about.