Council Tax budgets and spending

Elected councillors agree a budget each year that shows how much money we will need for the services we will be providing, and where the money will come from. Council Tax has to make up the difference between the amount we receive from other sources and the total it costs us to provide our services. This difference is called the Council Tax requirement.

Council Tax bills also include charges from local town and parish councils, Cheshire Police, and Cheshire Fire and Rescue Service. Each of these organisations sets their own budget for the services they provide. 

Council Tax budget summary 2019/20 

For 2019/20, the budgets to be met from Council Tax in the Cheshire East Council area are:

Council Tax budget summary
Authority 2019/20 2018/19
   £m  £m
Cheshire East Council 216.243 206.434
Police and Crime Commissioner for Cheshire 29.969 25.937
Cheshire Fire Authority 11.623 11.096
Town and parish councils 7.896 7.362

We have increased Council Tax by 2.99% for 2019/20.

The 2019/20 increase is only the fourth increase since 2010/11. We froze Council Tax levels for 5 years from 2011/12 to 2015/16, with some central government support. During those 5 years, we saved Council Tax payers a total of nearly £50m and continued to provide services that met the needs of local residents.

There are three reasons for this year's increase: 

  • there is growing demand for childrens social care
  • the costs of providing services is rising
  • central government is cutting what they give to local authorities and expecting them to raise more money themselves - from 2019/20, we won't get any general support grant at all. 

Business growth is helping to bring in more money from Business Rates, and the growth in house building should mean more Council Tax payers and higher Council Tax income. But it will still be a major challenge to raise the amount of money to cover what's needed.

Changes between the 2018/19 and 2019/20 budgets 

We need to raise £10.3 million more from Council Tax including town and parish charges in 2019/20 than we did in 2018/19. This is a mixture of less government grant and higher demand for key services.

Changes between the 2017/18 and 2018/19 budgets
Income or expenditure categoryChange to Council Tax requirement between 2018/2019 and 2019/2020
  £m
Reduced net spending on services -8.5
Increased growth in service demand and inflation pressures 23.3
Reduction in Revenue Support Grant 5.4
Increase in Specific Grant -2.6
Higher level of retained Business Rates - A -5.0
Increased contribution from previous years surplus -1.1
Increased town and parish council charges 0.5
Change in central budgets -1.7
Total 10.3

Notes

A - Local authorities give a proportion of the Business Rates they collect to central government for redistribution in government grants and keep a proportion for themselves as retained Business Rates.

How we spend our income

We split our services into service portfolio areas. Elected councillors decide how to share out our income between the service portfolio areas based on what managers say is needed. Each service portfolio is under the control of a portfolio holder, who is an elected councillor. Some services are looked after by more than one portfolio holder, which means the budget is split between two spending areas. 

Spending by service portfolio area

Gross Expenditure budget 2019-20

Breakdown of income and expenditure by service portfolio area

Breakdown of income and expenditure by service portfolio area
Area of spending2019/20 gross expenditure (amount of money needed) - A 2019/20 service specific income (not from Council Tax or Business rates) - B 2019/20 net expenditure (amount needed after deducting service-specific income) - C2018/19 net expenditure (amount spent after deducting service-specific income) - C 
   £m  £m  £m  £m
Schools  149.481 -149.481 0.000 0.000
Adult Social Care and integration 149.996 -39.926 110.070 105.687
Children and Families 85.064 -24.190 60.874 57.593

Corporate Policy and Legal services

15.568 -3.559 12.009 10.395
Finance and Communication 40.150 -25.398 14.752 11.801
Health    26.187 -17.070 9.117 9.045
Environment  64.413 -18.362 46.051 44.056
Housing, Planning and Regeneration 32.424 -12.384 20.040 20.231
Housing benefits 68.211 -68.211 0.000 0.000
Central budgets  1.163 -2.000 -0.837 0.263
Reserves 0.000 -2.899 -2.899 -0.304
Capital projects
financing
12.000 0.000 12.000 10.000
Total - D 644.657 -363.480  281.177  268.767

Notes

A - The gross expenditure columns shows what we plan to spend in 2019/2020

B - Service-specific income includes income from:

  • grants that can only be used for the particular service
  • fees and charges for services
  • other external contributions for the particular service

C - The net expenditure figure is the amount left after deducting the sum in the income column. This is the amount of money we need to cover from  general income. General income comes from Council Tax, Business Rates and government grants.

D - The totals line shows that after taking into account income we receive for specific spending areas, we still need to raise £281.2 million to cover the costs of services. This money has to come from general income - Council Tax, Business Rates and central government grants.

Service commissioning

Many of our services are now provided through contracts with other organisations rather than directly by Cheshire East Council staff. This is called commissioning. We then pay the other organisation to provide the relevant services. This money comes out of the relevant service portfolio budget.

We have created our own companies to provide some types of services. We've done this because companies can access funds and sources of income that we as a council can't. A share of the profits from these companies comes back to us to help fund services. For more information about these companies, see  Best Fit services

Sources of general income

Sources of general income
Source of incomeAmount 2019/20Amount 2018/19 
  £m £m
Business Rates retained 47.977 42.967
Revenue support grant (central government) 0.000 5.416
Specific grant (central government) 14.863 12.950
Collection fund (Council Tax surplus from previous years) 2.096 1.000
Cheshire East Borough Council Tax 216.243 206.434
Total general income  281.179 268.767

 Council Funding Sources 2019-20

 Capital spending

Our ongoing programme of capital investment includes investment in assets such as roads, land and buildings, equipment and vehicles. 

We often spread the costs and benefits of this investment over a number of years. In 2019/20, we plan to spend £149.2m on capital investment. This spending will be funded by a combination of government grants, affordable borrowing, developer contributions and proceeds from the sale of assets.

Breakdown of income and expenditure by service portfolio area for capital spending

Breakdown of income and expenditure by service portfolio area
Service portfolio areaCapital expenditure 2019/20 
  £m
Schools 16.7
Leader 0.0
Adult Social Care & integration 0.0
Children and Families 0.5
Corporate Policy and Legal Services 0.0
Finance and Communication 22.1
Health    4.3
Environment 93.7
Housing, Planning and Regeneration 11.9
Total  149.2

Detailed budget information

Our budget pages give full details of our budgets. On these budget pages, some areas of spending have the same name as the service portfolio but show a different figure from that given on this page. This is because on the budget pages we break the spending down into a wider number of service areas. To read the full budget breakdown, see Cheshire East budget.  

Cabinet members for Cheshire East Council and their service portfolio responsibilities.