CHESHIRE County Council claims it is facing a budgetary shortfall to the tune of £20 million.

Finance chiefs at the council say the Government's Provisional Revenue Support Grant Settlement will leave the county facing a £20 million deficit, after fire authority costs are taken into account.

In theory, the settlement will give Cheshire £20.4 million extra to spend - but County Finance Minister Gretta Cousins revealed the fuller picture.

She said: "When you take into account the cash that the Government has withheld from us to transfer to the Fire Authority it leaves just over £11 million extra - not near enough to meet our rising costs."

The council claims that after the Government grant has been taken into account, Cheshire will be left with a £20 million bill to cover growth in service demands, inflation, national pay awards, tax increases, new responsibilities and a four per cent minimum funding guarantee for schools.

Clr Cousins added: "We are already one of the worst funded education authorities in the country. While the Government has included £120 million extra for local authorities to help schools in financial difficulty, not one penny of it will go to Cheshire.

"The Government was repeatedly warned than an extra £800 million was needed in the national settlement to fund local government requirements, but it has included just £300 million.

"Whitehall must learn that local government will never work as it should unless adequate funds are provided but unfortunately this is not happening.

"Year on year, central government is shoving an increasing share of the burden for funding services on to Council Tax payers."

Cheshire's finance chiefs will continue to examine the government settlement as more details become available.

jsawyer@guardiangrp.co.uk