Cheshire East is applying to the government for permission to increase council tax by up to 9.99 per cent this year.

The cash-strapped council is looking at a funding gap of £18.2 million for the 2026/27 financial year.

In December officers wrote to the government requesting exceptional financial support (EFS) to help balance the books, including being allowed to hike up council tax by up to 9.99 per cent.

A report to this week's meeting of the finance sub-committee states: "The section 151 officer (finance boss) is clear that the scale and challenge faced by the council is such that it has no choice but to consider both capitalisation directions and council tax flexibility as tools to support the route to financial stability.

"Council tax flexibility at 9.99 per cent will add more than £15 million to the base income, whereby every one per cent on council tax equates to more than £3 million of additional income.

"As such, it is the professional advice of the section 151 officer that the council's EFS request be both capitalisation and council tax flexibility up to 9.99 per cent and the ongoing dialogue with MHCLG (ministry of housing, communities and local government) has been to that effect."

The table shows how much council tax payers could be paying in Cheshire East in 2026/27 if a 4.99 per cent increase is introduced or if a 9.99 per cent increase (Photo: CEC).

An increase of 4.99 per cent – the usual maximum a council can impose without a referendum – would see Cheshire East's part of the council tax rise from the current £1,882.04 to £1,975.95 a year for a band D property.

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If it went up by 9.99 per cent that figure for a band D property would be £2,070.06.

These figures relate just to the Cheshire East part of the bill and do not include charges for the police, fire and rescue service or town/parish council precepts.

Last year the government refused Cheshire East's request for permission to increase council by up to 9.99 per cent.

The report from the council officers to Friday's meeting states no decision has yet been taken on the council tax increase – the recommendation for the whopping rise is 'professional advice'.

It adds: "A decision on any flexibility on council tax resides with ministers in the first instance as to whether it is approved by MHCLG.

"Should it be granted, it is the responsibility of elected members to decide whether to accept the council tax flexibility option and increase the levels above the referendum levels. It is not a decision for the section 151 officer."

The finance sub-committee meeting takes place at 10am on Friday 30 January at Delamere House in Crewe.

A final decision on the council tax increase will be taken by full council at its budget meeting in February and will be dependent on whether it is given permission by MHCLG to raise it above the current referendum thresholds.

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