The council has launched part of its plan to save millions of pounds by asking suppliers for big discounts and streamlining staff pay and conditions.

Two letters have been sent out by Cheshire East Council, one launching a staff consultation on pay to save about £4m and another asking suppliers to offer a 15pc discount to cut up to £1m. The council has to cut spending by £31.3m next year.

Mandy Fazelynia, who runs Love Local Life said: "I understand the reasons for the discount request and it will save taxpayers money, but I’m concerned it could be untenable for some and move business away from the local area."

CEC will not reveal the suppliers it has earmarked for letters, due to arrive today, but Simply Scrummy on Church Mews, run by Richard

and Sarah Burke, makes CEC’s sandwiches and refreshments, so fears it could be a target.

Mrs Burke, 41, said: "I understand the economy is in a pickle, but aren’t we all? Of course if we receive a letter we would consider, but we would find it hard. We haven’t increased our prices for two and a half years and have had to swallow VAT, food and petrol increases.

"But we would always support our local council in any way we can."

Andrew Chaplin, who runs Al Panino on Chestergate and also caters for council meetings, said: "In the face of the recession we haven’t raised our prices so we’ve borne a lot of increasing costs. We have already discounted our customers across the board and although we are sympathetic to the council’s plight, we would be reluctant to discount further."

But Jason Patrick, of Verve, who is working on a project to ‘re-brand’ Macclesfield free of charge, said: "I think we all need to pull together and as the council is a major supplier to the business community I think it’s a fair request."

Coun Bill Livesley, vice-chairman of the Macclesfield Business Guild, said: "In these difficult times it’s got to be appropriate for the type of trade they run. It might not be possible with smaller contracts."

Coun Peter Mason said: "I’m sure the majority of people in Cheshire East will support this initiative. Any savings we achieve from our suppliers will mean more money can be spent on protecting frontline services.

"A lot of these suppliers have been inherited and their contracts may not have been reviewed recently."

CEC staff have had letters about a 90-day consultation on pay and conditions. Unison’s Phil Mason said: "This represents a substantial cut to all terms and conditions, overtime, weekend working and shift allowance.

"It means that binmen will not want to go out on a rainy Sunday if they aren’t getting paid extra. A CCTV operator will not want to be away from his family overnight if he’s not getting extra.

"This will have a knock-on effect on services for taxpayers.

"We’re not blind to budgetary pressures, but don’t turn on the staff, that’s all we’re asking."

Coun Mason said the review could make sure that all staff holiday entitlements, weekend and overtime pay and allowances are in line."