Spending cuts will slash £13.4m off Cheshire East council’s government funding over the next two years.

The council is coming to terms with the full impact of the cutbacks announced by Communities Secretary Eric Pickles during the comprehensive spending review.

Excluding council tax, the council’s total government grant will be cut from £101.5m this year to £96.9m in 2011/12 then to £88.14m in 2012/13, a 13.15 per cent drop overall.

Macclesfield has fared better than many authorities in the North West – but the savings will still be hard to make.

Council leader Wesley Fitzgerald, now also finance portfolio holder, said: "The true impact on Cheshire East is still being analysed. Cuts to spending of this magnitude were anticipated and service delivery proposals are currently being developed in light of the further detail now being provided. This cut is lower than the average to English authorities, but the council already receives relatively low Government funding."

He said Macclesfield taxpayers pay more than 60 per cent of the net budget, compared with 40pc nationally.

"The reductions in grant for Cheshire East are lower than average partly due to proposals around Council Tax.

"Figures assume that council tax will be frozen in 2010/2011, and the government will instead provide grant equal to a 2.5pc increase. This would provide £4.4m for Cheshire East, which reflects the council’s large tax base."

He added: "The council is preparing a Pre-Budget Report, for issue in early January and will engage local organisations in highlighting the local impact of government announcements."

MP David Rutley said: "This is a challenging settlement in the face of a record budget deficit. We have known about the likely scale of the settlement for some time and I know CEC have been working hard to prepare for this. We all need to have a closer look at the detail before we can comment on the implications for individual services. The localism bill will create a real shift in power from Whitehall to councils and local communities so we will all have a part to play in delivering the best possible outcomes for our towns and villages."

On the government decision to increase student fees he said he understood the strength of opinion on it and said: "Clearly there are difficult decisions to make when public finances are in such a difficult state and I believe that these proposals will lead to a more sustainable future for universities and for higher educations.

"It’s important that there is a better balance being struck between the true cost of higher education to the taxpayer and the lifetime value of this education for students. As a father of four young children these proposals will have a real impact on my family’s finances like many others, but I believe this is the best way forward in these challenging circumstances."