Cheshire East Council is asking the government for exceptional financial support for 2025/26.

In February, the cash-strapped council applied for exceptional financial support (EFS) in the form of a capitalisation direction for up to £17.6m for this financial year, although it has not yet drawn down on that.

Now it has applied for up to £31.4m for 2025/26 and indicated a potential request of £23.7m for 2026/27 after the government set a deadline of Friday, December 13, for councils who may need support to apply.

It comes as the Local Government Association said it expects one in four councils will need extra support over the next two financial years.

Interim finance boss and S151 officer Adele Taylor told the full council: "By submitting a request, we are asking for an in-principle agreement to be considered and to be able to seek support up to the value stated.

"If not all of it was required, we could utilise a reduced sum."

She said because the government had contacted councils about the request before the budget setting process and ahead of the local government finance settlement – which is expected this week – the figures quoted were estimates.

She added: "That final decision would form part of the full council budget setting report that you will consider in February if MHCLG (Ministry of Housing, Communities and Local Government) agreed to our request."

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Council leader Nick Mannion (Macclesfield, Lab) said: "The numbers contained in the report are very much worst case scenario, ones that made no assumptions whatsoever as to the pending local government financial settlement and other grants etc, that the council may receive from central government over the coming weeks ahead of February's budget setting meeting, by which time, some firm numbers will be available to us to consider."

Former council leader Sam Corcoran (Sandbach, Lab) said: "I think of EFS as an overdraft facility.

"It's good to have just in case you need it. And no EFS has been drawn down….

"However, the draft budget for 2025/26 shows a deficit of £31m with a deficit of £24m in 2026/27… we should make provision for those deficits to be covered, in case they are still in the final budget to be agreed in February."

Conservative group leader Janet Clowes (Wybunbury) said: "The things that I would like to have known a little more about are the potential costs of these loans.

"I see them more as a mortgage because they will be hanging over the head of this council for many decades to come."

Cllr Reg Kain (Alsager, Lib Dem) said: "I feel like I'm writing an open cheque for an advance I'm not sure of.

"I'd like to know exactly what I'm going to be borrowing, what rates I'm going to get it at, and how long it's going to take to pay back."

Forty three councillors voted in favour of submitting the request for exceptional financial support, former council leader Rachel Bailey (Con) voted against and 24 abstained.

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