MACCLESFIELD Council has a staggering £32.5 million stashed in bank and building society accounts.

The authority revealed its financial position at a recent cabinet meeting, prompting a scathing attack on its Tory leaders by Labour councillors.

Coun Steve Carter, leader of the Macclesfield Labour Group, slammed the Conservatives for "sitting on millions" while telling tenants there is no money for housing repairs.

He said the authority should spend the cash on projects in the borough instead of raising council tax by 4.4 percent.

But Coun Wesley Fitzgerald, leader of the council, has hit back at Coun Carter calling his comments "grossly misleading" and saying there is no pot of gold.

Coun Carter said: "The council is obviously having a problem spending the money it is raising from the taxpayer and this is a great concern.

"Some £4m remains in the repairs budget and there is £2.4m yet to be spent from planning gain as well. Yet when you ring the council and ask for some small repair or project to be considered you are told there is no money.

"These aren't small amounts of money and effective management of capital expenditure is required as a matter of urgency.

"The Tories seem to think that money in the bank shows prudential management but the fact is most of this money is earmarked to be spent on projects for the benefit of the borough. The fact it isn't is a great concern.

"This begs the question, if the Tories can't spend the money then why the outrageously high council tax increases year in and out?

"They tell the tenants there is no money for council housing yet they sit on millions. They say it is allocated but to what and by who? And we the people of the borough are not getting the services that we are promised."

Coun Fitzgerald said: "I believe that it would be highly erroneous to assume that we are not making the best use of our available resources.

"The £32m reported at the last cabinet meeting was a snapshot of the funds held at a specific date.

"For example, it includes £12m collected by us on behalf of the county council and not yet due for transferral to it and funds earmarked for the capital programme.

"This is not a pot of gold; it is based on prudent financial management and the sound investment of funds as and when these are available.

"Council tax is raised to fund the day-to-day running costs of the council."