Green light for Cheshire East Council budget including tax hike

Running costs at the local authority will increase by £20 million next year – with the council set to have a total revenue budget worth £301 million.

That will partly be funded by the tax increase – which includes two per cent ringfenced for adult social care – with the rate rise set to rake an extra £8.6 million into the authority.

It means a Band D property would pay £1,503.90 to the borough council – plus the precepts for their parish council, Cheshire’s police and crime commissioner and the Cheshire Fire Authority.

CEC will also raise an additional £4.6 million in tax from new properties, an extra £1.8 million from business rates, and a further £7 million from one-year Government grants for social care and the New Homes Bonus.

Meanwhile, spending on capital projects is also set to rise by £38.8 million, up to £171.5 million – including highways improvements, new school places and ICT expenditure.

Independent Cllr Craig Browne, CEC’s deputy leader, said: “Overall, I believe this budget achieves a good balance for the people of Cheshire East.”

Councillors praised the investment set for improving the environment, with the revenue budget includes £36.2 million on that priority, while £20 million will be invested on capital projects for the environment by April 2024.

Labour Cllr Nick Mannion, cabinet member for environment and regeneration, said: “Whilst the council has already significantly reduced its carbon emissions in recent years, there is an acceptance there is still much more work to be done if we are to achieve carbon neutrality by 2025.”

But social care is the biggest cost pressure on the council – and CEC is set to spend a total of £181.1 million in its revenue budget next year on services designed to help its residents ‘live well and for longer’.

Labour Cllr Laura Jeuda, cabinet member for adult social care and health, repeated the call for Government to finally publish details on how the sector will be funded beyond 2021 – three years after a green paper on the subject was promised.

While the budget is balanced for 2020-21, the council faces a funding deficit of £12.2 million in the following year, and a lack of detail on what money will be handed over from Government to CEC was given as the main reason behind that.

Cllr Sam Corcoran, CEC’s Labour leader, said: “As we only have a one-year Government settlement, it would be almost impossible for us to make a balanced four-year programme.”

But Cllr Janet Clowes, CEC’s Conservative group leader, insisted it is a ‘vulnerable budget’ as there is ‘little evidence of forward planning’ beyond 2021-22.

She also raised concerns about the limited amount of reserves CEC now has at just £35.2 million – with £24.9 million of that already earmarked.

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And Cllr Rod Fletcher, Liberal Democrat group leader, questioned whether the savings targets in the budget would be achievable – after the council had to cover a £6.8 million overspend this year.

He said: “We are being assured that this year the budget is more robust than in the past – but is it?

“We do accept the fact that the Labour-Independent administration has been working within a very difficult strait jacket due to previous poor financial use of resources by this council.”

Councillors approved the budget with 39 votes for, while all Liberal Democrats and all but one Conservative councillors abstained.