Cheshire East residents won't be facing a 9.99 per cent hike in their council tax, after the government refused permission for it to be increased above the maximum 4.99 per cent level.

In January, the cash-strapped council applied for permission to raise it by up to five per cent above the maximum level without a referendum.

On Monday 3 February, that request was refused, with Cheshire East saying it will now 'update financial plans as necessary'.

In January, Cheshire East Council applied for permission to raise council tax by up to five per cent above the maximum level without a referendum (LDRS).

The council's corporate policy committee is due to meet on Thursday 6 February to discuss the proposed budget for 2025/26 and four-year financial strategy.

The committee will be asked to recommend the budget to council for approval at the council meeting on February 26.

This will include setting council tax for the year ahead.

A council spokesperson said: "Cheshire East Council has been notified that a request for permission to consider raising council tax by up to 9.99 per cent for 2025/26, has been declined by government.

"The council wrote to the Ministry of Housing, Communities and Local Government in January, requesting permission under arrangements for exceptional financial support, to propose an increase above the 'referendum limit', as set out by government in the local government finance policy statement 2025 to 2026.

"The potential increase was requested as one of a range of possible measures that could be taken to ensure the council's forecast income aligns to forecast expenditure.

"All councils must, by law, set a balanced budget each year.

The Labour government has refused Cheshire East Council permission to increase council tax above the maximum 4.99 per cent level (Wiki Commons).

"The proposed budget sets out the council's forecast income and expenditure, with robust savings plans and proposals for the use of exceptional financial support from central government, to ensure that income will cover ongoing costs and future commitments in a sustainable and manageable way."

The final local government finance settlement: England, 2025 to 2026 was published on February 3.

The council spokesperson said: "We are reviewing the latest information from government and will update financial plans as necessary.

"It will take some time to analyse all the detail."