Cheshire East residents won’t be facing an almost 10% increase on their council tax after the authority failed in its bid to increase bills above the maximum level set by the government.
The cash-strapped council applied last month for permission to raise it above 4.99% without a referendum but learned earlier this week that request had been refused.
Cheshire East Council said it would now “update financial plans as necessary” in response to the news.
A spokesperson said: “Cheshire East Council has been notified that a request for permission to consider raising council tax by up to 9.99% for 2025/26, has been declined by government.
“The council wrote to the Ministry of Housing, Communities and Local Government in January, requesting permission under arrangements for exceptional financial support, to propose an increase above the ‘referendum limit’, as set out by government in the local government finance policy statement 2025 to 2026.
“The potential increase was requested as one of a range of possible measures that could be taken to ensure the council’s forecast income aligns to forecast expenditure.”
All councils must, by law, set a balanced budget each year.
The spokesperson added: “The proposed budget sets out the council’s forecast income and expenditure, with robust savings plans and proposals for the use of exceptional financial support from central government, to ensure that income will cover ongoing costs and future commitments in a sustainable and manageable way.
“We are reviewing the latest information from government and will update financial plans as necessary.
“It will take some time to analyse all the detail.”
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