‘Genuine turnaround’ for Cheshire East Council
“Cheshire East is finally facing up to the consequences of decisions deferred, problems ignored, and opportunities missed over more than a decade,” wrote the Chartered Institute of Public Finance and Accountancy in its review of the council’s books.
The report, which was authored back in May but only published today, was commissioned after Cheshire East Council requested Exceptional Financial Support from government for the 2026-27 financial year.
Cheshire East has been reliant on EFS for years, seeking £17.6m for 2023-24, £17.6m again in 2024-25, and £25.3m in 2025-26.
There is no way Cheshire East Council could have avoided bankruptcy without EFS support during these years, CIPFA noted.
However, this time the ask is different. Cheshire East is looking to use the financial boost as a “bridge to sustainability rather than a recurring sticking plaster,” CIPFA wrote in its report. The council is on track to start making significant savings in 2027-28, putting it on track to move off dependency on EFS.
“It is in a genuine turnaround situation, has made real progress over the last six months, but still has a long way to go,” CIPFA wrote.
Current methodology, the CIPFA noted, includes “asset disposals, new housing development, a potential revision to the Council Tax Reduction Scheme, and a star chamber approach to in-year underspends all form part of the recovery toolkit.”
Part of the problem is Cheshire East Council’s refusal to raise council tax, which has cost the authority £22.6m in cumulative income. Other issues mirror those impacting councils across the country – an increase in demand for services, particularly social care, that has outstripped funding.
There have also been issues around culture that have plagued the council.
CIPFA wrote: “Since its formation in 2009 the council has been dogged by external investigations, reputational damage and eroded staff morale.
“Years of austerity that forced difficult decisions elsewhere passed Cheshire East by,” the report continued.
“The pandemic compounded this, and the council arrived at its current crisis without the institutional resilience or appetite for transformation that the situation now demands.”
The current model for transformation and improvement has merit, making individual service areas accountable for their own savings, CIPFA noted. There is work to be done though.
“The council has the right intent, is building the right foundations, and has the right people in key senior positions. But intent must now translate into sustained delivery at pace, across all parts of the organisation, not just those already in motion,” the report stated.
“The council will be smaller, more digital and more strategically focused. Getting there requires strong nerve, genuine workforce engagement at every level, and the continued confidence of MHCLG and its residents. Without that, even the best-intentioned transformation will fall short of what is needed.”
Cheshire East Council Leader Cllr Nick Mannion welcomed the report’s acknowledgement of the work being done to improve the council. He pointed out that since it was authority, more progress has been made.
“We have completely changed the council’s governance arrangements, moving to a cabinet model in just six months,” he said.
“We have strengthened our independently chaired Assurance Panel with the appointment of Sharon Kemp as chair, continued to improve financial reporting and oversight, and made further permanent senior officer appointments.
“These are just a few examples of how we are responding to recommendations from this and other external reviews.”
Mannion said that the council was serious when it comes to improving.
“While we have made significant progress, we are not complacent,” he said. “We know there is more to do, and we are absolutely committed to delivering sustained improvement.”
Deputy leader Cllr Michael Gorman added that the council was focussed on the future.
“Our ambition is not simply to balance the books,” he said.
“We want to create the conditions for sustainable economic growth by attracting investment, supporting local businesses, delivering new employment opportunities, investing in skills and ensuring that our towns and rural communities are well placed to benefit from future growth.”
Cheshire East Council was one of several in the North West to undergo a CIPFA review.
Cumberland Council’s review showed a local authority that was on track to not require EFS support to have a balanced budget during the 2027-28 fiscal year.
Wirral Council’s was less optimistic, noting the local authority’s issues around delivery and handling financial stress. Its position is “serious but potentially recoverable”, the report said.
The CIPFA was most critical of Halton Council, whose budget situation is “unsustainable” with a budget shortfall due to to nearly £120m in 2030-31. Read more.
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The Road Maintenance is poor traffic lights shutting roads constantly for weeks and if any maintenance is done it is only superficially repaired therefore only lasting a short time causing more expense.
The new roads built for the hospital are also shut off to dig up for the services and again needing to be shut The council should have put their act together to enforce the building companies prior to just erecting the houses get their act together services sorted and then lay the roads on top. Obviously should be thought about therefore proper repairs to be made
This would save future long term expense for more time & man hours to stop repeating of the shoddy repairs and looks given to the roads.
Wheel washes should be on site to make safety for anyone travelling around the areas.
By Diana Ward
Can someone explain to me how you qualify for EFS whilst not raising council tax? Most councils I know of raise it by the maximum every year, so surely that’s the first thing to do in “exceptional” circumstances. It looks a lot like the rest of the country paying for a political decision to keep voters in Cheshire paying less. But I don’t know all that much about local government finance so feel free to correct me.
By Almoravid
Actually council tax has increased!
By Anonymous
Diana, Cheshire East actually installed mains sewers for the housing developments at Leighton as part of the new road works and the house builders paid the costs. The current works relate to the new hospital needing more power for an all electric hospital – something that was not on the cards when the new roads were built. On this front, it is perhaps something that deserves a pat on the back rather than critique? Road maintenance is obviously an issue though!
By Anonymous
This council do not seem to have any regard for financial budgets and for any ‘normal’ organisation, shortfalls of £17.6m for 2023-24, £17.6m again in 2024-25, and £25.3m in 2025-26, would have to give rise to a major shift and change in management/leaders. It is not acceptable that Council tax payers should have to continue with these levels of debt, which don’t seem to be taken as a serious concern by the council. I suspect there will be another significant shortfall this year no doubt.
By Anonymous
stop closing roads
If partialy closed we rarely see anybody working on them
By Anonymous
There seems to be a strong misunderstanding in the comments as to what a Local Authority is, and how their budgets work. 80% or so is spent on statutory services, that is things they have to deliver by law, and that they little to no control of demand for. That demand is, for almost every service across Adult Social Care, Children’s Social Care, Special Educational Needs, Homelessness, and beyond, rapidly increasing. The funds to deliver those services are not rapidly increasing, due to restricted central government grants, fixed business rates, and a cap on council tax increases.
This means councils have exceptionally squeezed budgets.
No, they can’t simply click their fingers and cut services left, right, and centre to balance the books.
No, the overspend are not due to local political decisions.
No, your local councillors do not have the power or authority to do almost any of the things you are currently thinking of in reply.
Can we please comment based on reality.
By Jon
The pavements around town are shocking and a real hazard for everyone. I have seen many people tripping over cracked tiles and cracked tarmac fills.
By Anonymous
Why ! , If they refused it increase Council Tax WHY Did my Tax go UP?
By Confused 🤔
This is being flagged as a positive move, but will inevitably result in further cuts. We have experienced poor decisions for the past decade and beyond. Why will this same council improve anything?
By Sue Mason
Our roads & paths are a disgrace as well as being dangerous they are damaging cars not to mentionwith the paths being as they are they are dangerous to walk in some places i know of a lady only last sat having a nasty fall she is in her eighties the bin collections are not being emptied when they should be especially the green bins we have been missed 3 times already this year & we are paying extra for that each year & it goes up each year we pay the highest for having them collected every fortnight in the year so that is unacceptable u need to improve ure services a lot
By Anonymous
Council tax has gone up.
All the houses that are being built council tax should not necessarily have gone up .
By Phil g
@ August 20, 2026 at 10:14 pm
By Jon
Going forward, it may be an idea for the town and parish councils in Cheshire East to consider taking on other things like the parishes in neighbouring Shropshire are. I think will eventually happen anyway due to budgetary pressures.
By Rye