Council speaks out on request to government for possible huge council tax hike

CHESHIRE East says the fact it has requested government permission to increase its council tax by up to 9.99 per cent without a referendum doesn’t commit it to raising it by that much.

As revealed by the Local Democracy Reporting Service yesterday (Tuesday), the council made a formal request to the Ministry of Housing, Communities and Local Government (MHCLG) on Friday to permit the council tax referendum limit to be raised by a further five per cent – above the current maximum of 4.99 per cent for the year 2025-2026.

A spokesperson for the 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.”

Cheshire East’s HQ at Delamere House in Crewe (Image: Google) The spokesperson continued: “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.”

He added: “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 £35m more this year to spend on essential services, support more families and fix more potholes.”

Cheshire East has a council tax support scheme, which can provide a reduction on council tax bills for those on a low income.

Information about this can be found on the council’s website.

The spokesperson said: “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.”