A WAR of words has erupted over the Government's financial support for Northwich's borough council.

Conservatives have hit back at claims from the Labour leadership at Cheshire West and Chester Council that communities are being 'short-changed'.

The council has received £18.9 million from Government to help cover the costs of Covid-19, but Labour says that by failing to work with the council to identify what funding is needed, the Government is setting limits that do not go far enough.

Council leader Cllr Louise Gittins said: “Councils have been leading the response to Covid-19, helping residents and businesses during these challenging times.

“To fund these costs, the Government has only provided the council with funding of £18.9 million - a shortfall of £11.5 million, and this funding gap will likely grow.

“We deserve better from the so-called ‘People’s Government’, which must play its part and provide essential funding.

“If it does not, council resources will need to be used to bridge the gap, harming our communities.”

Following a review of the council’s four-year capital programme to understand the potential impact of Covid-19, the Labour Group says that £290,000 of additional costs have already been identified, with several schemes anticipating a potential financial impact.

It considers it advisable to set up a contingency in the region of £5 million within the programme to fund these costs.

The Labour Group also says that loss of income for the council and its companies is forecast to be in the region of £17.3 million as a result of restricted trading and closures of car parks and leisure facilities, while it says revenue budgets will be stretched by an extra £30 million.

The forecasts do not include the potential impact on council tax and business rates collection funds, which indicate every two per cent reduction would incur a loss of income of around £4.5 million.

Cllr Carol Gahan, cabinet member for legal and finance, insists the Government 'can and must do more' and says CWAC is lobbying for more financial support.

But the Tories insist Labour is being 'misleading' with the maths.

Cllr Margaret Parker, Conservative group leader, said: “It is disappointing that at a time where communities have really shown what can be achieved when we all work together, the Labour Group has found the time to try and conjure some political gain and local disquiet by playing ‘fast and loose’ with the figures yet again.

“The funding from government to support our local response has been unprecedented in all areas, and the funds put at the disposal of the council to cover the costs of the emergency response and protect livelihoods now tops £96.6 million and rising.

“Throughout the pandemic, the Government has repeatedly increased support where it is needed, reacting to feedback on the ground and we expect this to continue.”

The Conservatives say CWAC has spent less on other areas than expected, and insist other sources of income will leave the council with a £3.4 million shortfall.

This can be funded by reserves, the group insists, while other targeted sources of funding - like the recent £805,000 cycling and walking fund - are 'in the pipeline'.

Cllr Neil Sullivan, shadow cabinet member for legal and finance, added: “Reserves were nearly £90 million at the start of the crisis, built up after serval years of very high council tax increases by Labour. This modest shortfall should not be difficult to fund.

“The financial impact of Covid-19 will clearly need thorough scrutiny as we review plans for the future and work with the Government to support residents and rebuild the local economy.

“We also need to ensure scrutiny identifies the true costs and impact of the pandemic and clearly separates these from the ongoing poor financial stewardship and underperformance of the Labour administration.”