Mark Whitehead 16 February 2024

Cheshire East seeks support to avoid Section 114 notice

Cheshire East seeks support to avoid Section 114 notice image
Image: Singkham/Shutterstock.com.

Cheshire East Council is the latest to request help from the Government to avoid having to declare itself effectively bankrupt.

The authority has asked for an extra £17.6m which it says is needed because of costs related to the cancellation of HS2 and special educational needs.

It said the support would reduce the 'imminent risk' of having to issue a Section 114 notice.

The council has £14.1m in its general reserves, but has warned that it may have to use that money to cover shortfalls and is forecasting a £13m overspend in the current financial year.

In December the Local Government Association warned that almost one in five councils in England thought it was very or fairly likely that they would need to issue a Section 114 notice this year or next due to a lack of funding to keep key services running.

In 2018 Northamptonshire was the first local authority to issue a section 114 notice in two decades, and since 2020 a further seven councils in England have followed.

Cheshire East introduced a number of cost saving measures, including charges for garden waste collections, cuts to library opening hours and a decision to close its headquarters.

But the council is set to face further challenges in its next financial year and is proposing measures including temporary tip closures, cutting staffing costs and asking parish councils to contribute to libraries and leisure services.

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