Cheshire East explores 5% council tax hike

Council tax bills in Cheshire East could rise by 5% after the local authority asked government to waive limits.

Councils receiving exceptional financial support, such as Cheshire East, are able to apply to the Ministry of Housing, Communities and Local Government (MHCLG) to increase council tax above the current maximum of 4.99%.

A spokesperson for the Labour and Independents-led council said it was important to "explore every option to improve financial stability".

They said the proposed increase - the maximum permitted without a referendum - would help the authority tackle an £18.3m funding gap it announced earlier this month.

"An increase of five per cent would be equivalent to £1.72 per week for a Band D property," the council said.

At a meeting of the council's Children and Families Committee on Monday, Conservative councillor Chris O'Leary called the requested hike an "excessive increase" and questioned the impact it would have on children in low income households.

Committee chair Carol Bulman, Labour, told the meeting: "I would say that those in Band D properties who can afford to pay extra, should at this moment in time."

She said, however, that she recognised the increase would be the same as "a child's school dinner money", adding "it's all significant in these hard times".

Labour councillor Sarah Bennett-Wake highlighted 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.

O'Leary replied: "I'm not going to apologise for keeping the council tax low.

"I think it's 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."

The council said: "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."

It added: "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."

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