Government rejects Cheshire East bid to raise council tax by 9.99%
Cheshire East Council has been refused permission by the government to increase council tax by 9.99% from 2026/27.
Last updated 10th Feb 2026
It is the second year running that ministers have rejected the council’s request to raise council tax above the standard maximum increase of 4.99% without holding a local referendum.
The financially-stretched authority, which had previously forecast an £18.2m funding gap for 2026/27, has now revised the estimated shortfall to £30.9m.
A Cheshire East Council spokesperson said the proposed council tax increase was one of several options considered as part of the budget-setting process and acknowledged it required approval from central government.
They said councillors would now work to agree a balanced budget through alternative measures, including a request for additional exceptional financial support, which is subject to further government approval, alongside proposals for savings, income generation and growth.
The spokesperson added that the government had also announced a high-needs stability grant, expected to improve the council’s financial position by £2.7m in 2026/27 and £5.3m in 2027/28.
Conservative councillor Chris O’Leary, opposition spokesperson for finance, described the local government finance settlement as “good news and bad news” for Cheshire East.
He said the refusal to allow a near-10% council tax rise meant residents would avoid a significant increase.
“This means that the borough’s taxi drivers, factory workers, shop assistants, police officers, nurses and teachers will not see their council tax rise by nearly four times the rate of inflation,” he said.
However, Cllr O’Leary warned the decision would leave the council needing to borrow around £30m in 2026/27 to cover day-to-day costs.
He said the funding gap was largely due to the failure of the council’s transformation programme to deliver £14m in planned savings, along with around £10m in additional costs linked to children’s services, including its inadequate Ofsted rating and ongoing special educational needs and disabilities (SEND) pressures.