Council applies to raise council tax by up to 9.99 per cent without referendum
By Belinda Ryan - Local Democracy Reporter 14th Jan 2025
Cheshire East has applied to the government for permission to increase the council tax by up to 9.99 per cent, without holding a referendum.
Local authorities in receipt of exceptional financial support are able to make a formal request to the Ministry of Housing, Communities and Local Government (MHCLG), to increase their council tax above the usual referendum limits.
On Friday 10 January, the council made a formal request to MHCLG 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.
At this stage there is no guarantee the government will give the go-ahead, and, if it does, any rise would still have to be agreed at February's meeting of the full council when the budget is set.
Several Conservatives have already indicated they would be strongly opposed to a massive rise.
The matter was revealed at a meeting of the children and families committee on Monday 13 January by Conservative councillor Chris O'Leary (Sutton).
Cllr O'Leary said to committee chair Carol Bulman: "On Friday, this council submitted a request to the government to be allowed to have an excessive increase in council tax of 9.99 per cent for next year.
"Council tax is a regressive tax, and I wonder, therefore, if you could confirm the Labour and Independent administration will be undertaking an equalities impact assessment on that increase on council tax and the impact it will have on children in low income households."
Cllr Bulman (Middlewich, Labour), said: "It isn't a done deal yet, of course, it's a request.
"I would say that those in Band D properties who can afford to pay extra, should at this moment in time.
"People in lower band, it will be two or three pounds a week.
"Yes, that's a child's school dinner money, it's all relevant, it is all significant in these hard times."
But she said Cheshire East did offer a very generous means-tested council tax relief scheme for those who were struggling.
Macclesfield councillor Sarah-Bennett-Wake (Labour), said: "We are here to look after children, and that's our statutory duty. For me, it is a moral duty as well."
She said costs were rising and children's care had to be funded.
Cllr Bennett-Wake referred to a report from the council's interim executive director of resources which indicated that if Cheshire East had not frozen council tax under the Conservative administration between 2011/12 and 2015 it would have raised an extra £120m.
She added: "But the issue here is there's people who can pay won't pay and there's people who can't pay will get assistance for that.
"But up to Band D it's less than the price of a cup of coffee."
Cllr O'Leary replied: "I am not going to apologise for keeping the council tax low.
"I think it is worth bearing in mind that the reason the Conservative government from 2010 to 2015 funded councils to freeze their council tax was because Labour between 1997 and 2010 increased the council tax by so much."
He added: "The message we are getting today that if you live in a band D property, you should be able to afford an extra £15 a month, and you shouldn't worry about that. You should just cough it up and pay for it."
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