Every year, Councils are legally required to produce a balanced budget. Every year we hear a litany of reasons why CEC is sliding further and further into debt.
All Councils are under significant fiscal pressures, but CEC’s Labour-Independent administration is a national outlier in significant budget areas and consistently fails to deliver its own annual budget promises.
In February 2024, CEC’s Labour Leader triumphally announced a 4-year balanced budget for the first time in CEC’s history - it lasted less than three months.
As CEC’s 2025/26 Budget Public Consultation draws to a close, they've submitted requests to government to raise Exceptional Financial Support (EFS) to the tune of £17.6m (to balance 2024/25 budget short-falls, up to £31.4m to meet anticipated shortfalls in 2025/26 and £23.7m in 2026/27.
To do this, CEC will borrow (incurring significant interest), capitalise assets and finally, utilise government legislation that permits Councils requiring EFS to raise council tax above the maximum 4.99% without a public referendum. CEC are seeking to increase Council Tax by another 5%.
So this year, residents face potential Council Tax rises totalling 9.99% plus significant cuts/charges for non-statutory council services. At the same time, residents must also pay precepts to their Town or Parish Councils, Cheshire Fire and Rescue and PCC Policing Services.
CEC decisions will impact all residents for years to come and the vulnerable will be most affected.
In real terms there is now precious little difference between the impacts of CEC’s fiscal machinations and an S114 (bankruptcy) Notice.
REF:
https://moderngov.cheshireeast.gov.uk/ecminutes/ieListDocuments.aspx?CId=965&MId=10324&Ver=4
(Item 6)
