CREWE residents face a 4.99 per cent increase in their council tax bills after Cheshire East published its budget proposals.

Council tax payers are set to be hit with the maximum rise that local authorities can make as the authority increases spending in the wake of Covid-19, which will amount to around an extra £1 a week on household bills.

Cheshire East's Cabinet will discuss its spending plans over the next four years at its meeting next Tuesday (February) and will make recommendations to the full council, which meets on February 17.

The pandemic has influenced its decision making after confirmation of a one-year financial settlement for councils by the Chancellor Rishi Sunak at the December spending review, which allows councils to increase their spending power, mainly by hiking up council tax.

Cllr Amanda Stott, Cheshire East Council Cabinet member for finance, said: "Councils face very difficult choices and must strike a balance between protecting vital local services and keeping council tax rises to a minimum.

"We know that the proposed 4.99 per cent increase in council tax for 2021/22 will be a concern for many residents.

"We are looking to reduce the impact of this rise on lower income households through changes to our council tax support scheme. Beyond 2021/22 we are proposing smaller increases in council tax of 1.99 per cent.

"These are unprecedented times. This budget has been one of the most challenging to prepare."

Cllr Stott added: "We have listened to feedback and responded to the changing situation to propose a balanced budget for the next four years. I am pleased that this is the first time ever we have put forward a balanced budget for a four-year period.

"We have also produced an ambitious corporate plan setting out our priorities for the same period."

The council says its four-year corporate plan sets out a vision for an "open, fairer and greener" Cheshire East and its priorities for the next four years.

Its medium-term financial strategy sets out the council's planned income and expenditure over the next four years. This includes proposals for investment, savings and efficiencies, the level of council tax payable by residents, grants and other income.

Reductions in government grant funding are being tackled by efficiency savings as well as the council tax increase.

The council's two documents, initially published in draft last year, were amended after consultation with residents and other stakeholders.

The medium-term financial strategy included proposals for a number of significant " changes to services", but some of these have been modified after consultation.

Savings in children's services have been significantly reduced and the council says it is still holding by its commitment to move towards becoming a carbon neutral authority by 2025.

Cllr Stott revealed: "We are increasing our spending in people-based services by more than £12 million over the next four years. This will help to modernise and meet the demand for services such as social care, mental health and young people with additional needs.

"The council will also manage capital investments of £0.4 billion over the next four years on roads, schools, growth and enterprise and critical ICT services.

"At the same time, we are seeing a further reduction in government grant funding. We are balancing this with a mixture of cost savings and efficiencies, increased income from council tax, and making sure that we recover costs for the services for which we charge directly.

"Other savings, we think, need more time to plan to achieve the priorities of the corporate plan in a post-Covid environment, so we have adjusted the budget to reflect that too.

"This is affordable by retaining some difficult but achievable savings, in addition to raising council tax, in line with government expectations.

"This is part of a four-year balanced strategy. As the pandemic continues it is essential that we put the council onto a secure financial footing and have a clear vision from which to build."