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 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.

“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 our business out there 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.