Council urges response to government Fair Funding 2.0 consultation

Cheshire East Council is calling on local partners and stakeholders to respond to the Government’s Fair Funding 2.0 consultation, which proposes major changes to how councils are funded.

The consultation includes plans to reset business rates baselines, introduce council tax equalisation, and revise funding formulas that have remained unchanged since 2013.

The council has published an open letter outlining its concerns and encouraging organisations across the borough to submit their own responses before the consultation closes at 11:59pm on 15 August 2025.

Current national proposals link funding to councils applying 5 per cent council tax increases each year.

This limits local choice, and if left unchanged in the government proposals, councils may be penalised through council tax equalisation.

This is a process where the government adjusts funding to reduce differences between councils. It could mean that councils choosing not to raise council tax by 5 per cent may receive less support. Any extra income would only come from raising council tax, unless national decisions change.

Councillor Nick Mannion, leader of Cheshire East Council, said:

"This consultation is a defining moment for local government. We need a funding system that reflects the real costs of delivering services in communities like ours - where rurality, deprivation, and growing demand all play a role."

Councillor Michael Gorman, deputy leader of Cheshire East Council, added:

"We’re urging our partners - from town and parish councils to the NHS, emergency services, and the voluntary sector - to stand with us. Your responses will help to ensure Cheshire East gets the fair funding it deserves."

Rob Polkinghorne, chief executive of Cheshire East Council, said:

"The proposals could significantly impact our ability to plan and deliver services. It’s vital that we all make our responses clearly so that the government hears the voices of our communities."

The council’s response to the government's Fair Funding consultation and open letter are available to view and use as a template for submissions.

Partners and stakeholders can submit responses and access the consultation survey directly at: 

Fair Funding Review 2.0 – Ministry of Housing, Communities and Local Government.