Cheshire East has narrowly approved its budget by 42 to 37 votes, which includes a 4.99 per cent hike in council tax.

The Conservatives, Liberal Democrats and non-grouped councillors – including former Labour member Laura Smith – all voted against the cost-cutting budget at Wednesday's (February 26) meeting of the full council, with former council leader Rachel Bailey (Con) saying residents were paying for the financial mismanagement of the Labour/Independent administration.

Labour councillors said councils of all political colours were in a financial mess because of the actions of the Conservative government over the past 14 years.

Council leader Nick Mannion (Lab) said Cheshire East's financial position was improving because of actions the council had taken, and the funding gap of £28 million predicted last summer is now forecast to be just over £18 million at the end of this financial year.

Cllr Mannion told the meeting at Tatton Park: "The budget for 2025/26 has almost certainly been the toughest that this council has ever had to prepare.

"We were sinking last summer. We are now stable, but there is much work to do to set the ship Cheshire East Council underway again.

"We still have a massive amount of hard work ahead of us before we can say with confidence that the council is returned to a financially sustainable position…

"We must not, we dare not, relax our focus through the acceleration of the delivery of our transformation plan.

"There are many tough decisions ahead for our service committees to make."

Deputy leader Michael Gorman (Ind) said the particular issue for Cheshire East has been the financing of statutory children services and adult social care services, 'the demand for which has exploded in recent years and now, in the case of Cheshire East, accounts for more than 70 per cent of our revenue spend'.

Cllr Gorman said: "To balance the books in the short term, cuts have been made in place service committees, including the closure of tips, the reduction of library hours, green bin charges and the introduction of parking charges.

"These decisions have been painful and challenging, but have been instrumental in keeping the council out of S114 [effective bankruptcy]."

Referring to the £25.3 million exceptional financial support agreed by the government this month, Cllr Gorman said: "Let us be very clear, £25 million EFS borrowing helps, but borrowing certainly isn't the long-term solution here, the council will need to continue the transformation program, both to reduce spending and increase income.

"It's imperative that we deliver against the budget that we set today."

Conservative group leader Janet Clowes said the council was facing an £18 million overspend this year 'in large part due to the failure to deliver last year's MTFS budget lines'.

She told the meeting: "This MTFS (medium term financial strategy 2025-2029) is wholly dependent on receipt of exceptional financial support totalling £43m to date.

"This MTFS also identifies a potential additional EFS requirement of £22m for 2026/27.

"This latter sum was not approved by government last week, and so, whilst on paper, there is a balanced budget for this year, the MTFS before us for the identified period is not yet balanced."

She added: "We are here today to discuss the budget for the year 25/26 and thus we have to express our deep concerns about its deliverability."

Liberal Democrat leader Reg Kain said he would not be voting for a budget which is 'jam tomorrow'.

"This budget, in my mind, and the way that it's been structured, will not solve this council's problems.

"All I'm hearing is transformation, which is another word for cuts," said the Alsager councillor.