Cheshire West's top finance councillors have clashed over the feasibility of the Chancellor's 2021 budget plans.

Rishi Sunak unveiled his spending plans and post-Covid recovery blueprint for the UK on Wednesday (March 3).

Now, Labour cabinet member for finance, Cllr Carol Gahan, and Conservative shadow finance cabinet member Cllr Neil Sullivan have clashed over how feasible the plans are.

Cllr Gahan told the Local Democracy Reporting Service: "I am pleased they are seeking to support more self-employed people and continue the grants because I believe that we need that. But, we also need a stimulus and not enough emphasis is on that support for businesses. I think there are some gaps that need to be addressed.

"The tax allowance freeze I think is bearable only in the short term because it does need to move with inflation because it is [hard] on the lowest earnings.

"On the issue of corporation tax — I know it is 2023 when they increase it. As long as they do not do it straight away, in the next 12 months, I think there's the possibility that the economy will be able to withstand that increase.

"Our businesses are really important to our future in Cheshire West and as a local authority we want them to be working and providing jobs for our residents."

The budget announcement saw a raft of coronavirus support measures extended, including furlough, support for self employed workers, and a £20 universal credit uplift all extended until the end of September.

In reply, Cllr Sullivan said: "I think the steps taken are reasonable and logical in the circumstances we find ourselves in. We clearly have to achieve a recovery after the closure of the economy last year — a lot of sectors are very fragile.

"Furlough extension is welcome for those that need support. That last thing we want is high levels of unemployment. Clearly the day will come when we have to pay this back, but as a small business owner myself, businesses will have to pay their fair share.

"Freezing personal tax allowance is probably the fairest way of doing this.

"We have to get the economy moving again but I think the steps we have taken will result in a good recovery but some sectors will struggle.

"I think it is sensible, nobody likes paying tax."

The Chancellor also announced that the Office for Budget Responsibility — an independent body which assesses the state of the UK economy — predicts that it will return to pre-pandemic levels by the middle of 2022.

Adult social care and council tax bills

Cllr Gahan also commented that it is 'disappointing' that the Budget does not 'address social care'.

The Labour Councillor added that the government needed to 'pay attention' to the issue, which her party said last week was one cause for a 4.99 per cent council tax rise — although her opposite number said the council should spend its funds 'better' to avoid such rises.

Cllr Gahan told the Local Democracy Reporting Service: "From what I have seen, I am really disappointed they are not addressing social care at all.

"That, to me, seems a serious omission because they are continuing to push that issue further down the line and it is significant — that needs to be addressed."

At last week's full council meeting, CWAC councillors approved the authority's 2021/22 budget — including an increase in council tax of 4.99 per cent.

Three per cent of this is an adult social care precept, with Labour members saying that the Chancellor had forced the decision on the authority.

When asked if Mr Sunak's 2021 spending plans made similar council tax rises more likely in the future, Cllr Gahan said: "It is most definitely something we do not want to do. We want to make sure the government pays attention to this and funds social care adequately and sustainably for the future. I really believe that is something we need to make them pay attention to."

In response, her Conservative counterpart, Cllr Neil Sullivan, told the LDRS: "[Social care] is an issue that will need to be addressed, it has taken longer to come up with a long term plan then we would have liked, but a lot of government attention has been on Brexit and the pandemic.

"It is an issue, and clearly we need a longer term model for the sake of everybody. However, if we spend some of the colossal amount we do spend better, it would go further. I believe there are better opportunities to spend what we do on adult social care."