Council leader Wesley Fitzgerald has spoken about why finance chief Frank Keegan was axed from his role.
The Alderley councillor was removed from Cheshire East Council's (CEC) Cabinet earlier this month and blamed an 'untenable' relationship with the leader, saying they disagreed on how to handle the cuts.
But Mr Fitzgerald has said Coun Keegan lost his role because of his conduct internally.
Mr Fitzgerald said: "I am aware there has been speculation around the removal of Coun Frank Keegan from the Cabinet position.
"Much of what has been reported alludes to the fact there was disagreement between myself and Coun Keegan about the difficult financial decisions the Council has to make to deliver a balanced budget.
"I would like to make it clear that the reason Coun Keegan was removed was as a result of his conduct and behaviour when relating to senior officers and council members when discussing issues relating to the day-to-day operation of this council."
He said the CEC's financial leadership is covered by the Efficiency Group set up in August with couns Keegan and Rod Menlove and senior officers.
He added: "The challenges faced have been explored in depth and a strategy has been developed to tackle them through the good work of the Efficiency Group.
"The group has met on a weekly basis and scrutinised the budget and financial challenges.
"Recommendations are being assessed by myself and a group of Cabinet members and senior officers.
"I would like to reassure everyone that while we are facing the effects of the comprehensive spending review, I am confident the difficult decisions we have to make will bring long-term financial stability to the services we deliver."
