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Value for Money and Financial Strength 2023/24

What we spend and where it comes from

Cheshire East Council is one of the biggest councils in the Northwest of England. It looks after about 500 different services for nearly 400,000 people.

Every year, the Council spends around £700 million in total. This includes:

  • Capital spending (money for buildings and long-term projects)
  • Government grants, like the Dedicated Schools Grant for education

The Council’s net spending is the money it pays for using Council Tax, Business Rates, and some government grants. For 2023/24, this is about £350 million.

The Council must manage money carefully. Councillors and staff have a duty to keep the Council’s finances stable so services can continue.

The information below is split into four main parts:

Local Taxation

The Council uses money from taxes to pay for most of its services. Over time, the government has given less money to councils, so Cheshire East now relies more on:

  • Council Tax
  • Business Rates
  • Fees and charges (like car parks or licences)

Council Tax

Council Tax is set by:

  • Cheshire East Council
  • The Police and Crime Commissioner
  • The Fire Authority
  • Town and Parish Councils

Bills are based on a property’s value. Discounts or reductions can be given depending on someone’s situation.

Since 1 April 2013, the Council also runs a Council Tax Support scheme to help people on low incomes.

The Council collects the money and then shares it with the other organisations.

Cheshire East’s Council Tax levels are compared with other similar councils across England.

Business Rates

Business Rates are set by the Government, but the Council sends the bills and collects the money.

Since 1 April 2013, Business Rates collected are shared between:

  • Cheshire East Council – 49%
  • Fire Authority – 1%
  • Central Government – 50%

There are rules that stop the amounts changing too much each year.

The Government can set discounts and exemptions, but the Council can work with local businesses to change rates in some situations, such as by joining with other councils in a pooling arrangement.

The Council also looks closely at how Business Rates have changed since the scheme began in 2013.

Core Spending Power

Core Spending Power is the amount of money available each year for day‑to‑day services (not including school money, which is separate).

The Government announces these amounts every December, and confirms them by February.

Cheshire East’s Core Spending Power is compared with other councils that also run Social Care services.

Capital Spending and Borrowing

This section shows why long‑term planning of big projects and money management is important.

Capital Spending

Capital spending is for things like:

  • Buildings
  • Roads
  • Long‑term equipment

The Government also allows councils to use money from selling assets to fund certain improvement projects.

Treasury Management

Treasury management means looking after:

  • The Council’s cash
  • Banking
  • Borrowing and investing
  • Risks and opportunities

Each year, councillors approve a Treasury Management Strategy. This is required by law under the Local Government Act 2003.

The strategy aims to:

  • Keep money safe
  • Make sure the Council has enough cash to run
  • Earn the best return it can
  • Keep borrowing costs low

Borrowing Strategy

The Council borrows money when needed but tries to keep the cost as low as possible so services aren’t affected.

By law, the Council must pay back some of its debt each year. This is called the Minimum Revenue Provision.

Balance Sheet Review

Every year, the Council reviews:

  • Investment levels
  • When debts are due
  • Planned use of reserves
  • Future spending plans
  • Working capital needs

The Council also publishes an Investment Strategy as part of its Medium-Term Financial Strategy (MTFS). This looks at assets bought mainly to earn money.

Managing Changes

If capital spending needs to change, it must be reported and approved following the Council’s rules.

Reserves Levels

The Council’s Reserves Strategy is agreed each year but can be updated if new issues appear.

Reserves help protect the Council from risks and unexpected costs. The Section 151 Officer must make sure reserves are high enough. They can restrict spending if they think reserves are too low.

To manage risks well, the Council must:

  • Stay within its budget
  • Bill and collect fees and charges properly

Good debt collection and steady spending patterns help keep risks low.

The most recent full comparison of reserves (in a PDF) uses 2021/22 data because later national data is not yet available.

Chartered Institute of Public Finance Accountancy - Resilience Index

The CIPFA Index helps councils understand financial risks by showing how they compare to similar councils.

It uses several indicators based on publicly available information. There is no single score for financial risk, but the index shows areas where a council might need to look more closely.

Page last reviewed: 02 March 2026