Cash-strapped Cheshire East Council considering whopping 9.99% tax rise

Crewe Road in Alsager
-Credit:Reach Publishing Services Limited


A cash-strapped council is asking for Government permission to increase its council tax by up to a whopping 9.99 per cent. Current rules state that local authorities cannot increase council tax by more than 4.99 per cent without a local referendum.

But Cheshire East Council - which takes in Congleton and Alsager - has asked the Ministry of Housing, Communities and Local Government for permission to raise the council tax referendum limit to 9.99 per cent in 2025/26.

Now the council has stressed that the Government request does not mean that council tax will rise by up to 9.99 per cent. A final decision will be made at a February meeting.

ADVERTISEMENT

READ MORE: Families 'abandoned' on new estate where lights don't work and road unfinished

READ MORE: Police urge public to help as they search for missing Staffordshire woman

A council spokesman 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.”

The spokesman added: “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.

ADVERTISEMENT

“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’s 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 £35 million more this year to spend on essential services, support more families and fix more potholes.”

Get daily headlines and breaking news emailed to you - it’s FREE