Council tax could increase by almost 10%

Cheshire East Council residents could see their council tax increase by almost 10%.

The council has asked the government for permission to raise the tax by that amount and has also asked for exceptional financial support, warning it could face effective bankruptcy, if it does not receive it.

The authority said it is facing a budget gap of more than £30m next year, highlighting rising costs in adult and children's social care and added if it did not receive exceptional financial support it "cannot set a balanced budget".

Councillors are set to discuss the budget at a finance meeting on Friday before the budget goes to the full council in February.

The council applied for a 9.9% tax increase last year, but it was refused.

Cheshire East Council is under no over control and is run by a coalition of Labour and Independent councillors. It said it was facing a shortfall of £30.9m for the 2026/27 financial year.

Councils are legally required to set a budget. If they cannot, they would issue a section 114 notice which is when a council is effectively bankrupt.

Local authorities cannot technically go bankrupt, but a S114 requires them to stop spending and come up with a new budget within 21 days.

Exceptional financial support does not mean an authority receives more money from the government.

Instead it can be allowed to borrow money or treat some of its day-to-day spending as a longer term investment cost. This will be the third year the council has applied for it.

Councils can also be given permission to increase council tax above the usual rate of 4.99%, but only six councils were allowed to do this last year.

Neighbouring Warrington Council has also asked for exceptional financial support.

Last year 30 councils were offered exceptional financial support, including Cheshire East.

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