LABOUR councillors say they will battle cuts to services 'as far as possible' following the coronavirus crisis amid a possible £70 million bill.

It comes as Cheshire East Council, Middlewich's borough council, has been allocated £2.7 million from central Government in the latest round of financial support to cover the costs of Covid-19.

That figure follows two earlier rounds of funding, meaning the local authority has now received £22.4 million to help meet the costs of both CEC’s usual services and its additional pandemic ones.

Labour members, who share control of the local authority with the Independent Group, say the potential cash shortfall is leaving councils across the country facing the prospect of ‘deep cuts’.

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In a statement, a spokesman for the Labour group said: “The failure of the Government to honour its promise to reimburse councils for the impact of the Covid-19 pandemic has resulted in CEC facing a multi-million pound hole in its budget, and the prospect of having to make major cuts in services.

“The Labour group on CEC pledges to protect the most vulnerable in our communities as far as possible from the impact of any service cuts.

“There must be no 'one-size-fits-all' approach, as this far too often means the greatest burden falling upon the poorest and most vulnerable in our communities.”

Local Government Secretary Robert Jenrick addressed more than 300 council leaders in England on March 16, where he told them that ‘the Government will do whatever is necessary to support these efforts’ during the pandemic.

Knutsford Guardian:

Robert Jenrick. Image: PA Wire

CEC expects coronavirus to eventually cost £70 million, including social care, the maintaining of frontline services and around £10 million for additional school transport for social distancing.

Cllr Rod Fletcher, Liberal Democrat, called on the Government to do more to provide support for CEC at a recent cabinet meeting – saying he was ‘deeply alarmed at a potential £50 million shortfall’ and ‘disappointed’ the Government did not seem to be reimbursing the local authority.

Earlier this month, both CEC leader Cllr Sam Corcoran (Lab) and deputy Cllr Craig Browne (ind) slammed the latest Government funding round as ‘simply inadequate’, when it was announced £500 million would be shared between councils in England.

Knutsford Guardian:

From left: Cllr Corcoran and Cllr Browne

At the time, Mr Jenrick also announced a separate package for councils compensate for lost sales, fees and charges – but this will only be up to 75p in every pound, and only if income has reduced beyond five per cent.

Payment of council tax and business rate deficits can now be made over the next three years – rather than next year – to help ease cashflow pressures, while Mr Jenrick said further measures to see how councils could be supported would be considered in the Government’s next spending review.

He added: “Councils are playing a huge part in supporting their communities during this pandemic.

“From supporting the most vulnerable and keeping vital services running to operating local track and trace, council workers have been at the forefront of this great national effort and are the unsung heroes of this pandemic.

“This Government will continue to stand shoulder to shoulder with councils and communities as we recover from this pandemic as we renew our commitment to unite and level up the country.”