Cheshire East's Labour leader has said the recession was made in Downing Street and now we're all paying the price with tax hikes, increased interest charges and higher inflation.

Speaking in response to chancellor Jeremy Hunt's autumn statement, Cllr Sam Corcoran, who is a Sandbach councillor, said over the last decade the Conservatives 'have hollowed out public services and the economy'.

He said in 2009/10 Cheshire East Council received government revenue support grant of £11.6m, now it receives nothing.

And he described the squeeze on council tax payers as 'a tax bombshell for residents'.

"Hidden in the autumn statement documents was the confirmation that the government is lifting the limit that council tax can be raised by without a referendum – to three per cent for all councils, and with an extra two per cent for councils, such as Cheshire East Council, with adult social care responsibilities," said Cllr Corcoran.

"The chancellor didn't mention this when standing up in the Commons, as he didn't want to draw attention to what will be an extra pressure on household budgets."

The Labour group leader said even raising council tax by five cent won't fix the funding gap in local government, as it had been estimated by the Local Government Association that council tax would have to rise by 20 per cent just to meet current pressures.

Cllr Corcoran said: "Two thirds of Cheshire East Council's expenditure is on social care costs and this is where the council is experiencing the greatest inflationary and demand-led cost pressures."

He welcomed the fact that funding which would have been spent on proposed government reforms to adult social care – which he said would have added to costs next year – will now be allocated to dealing with increased social care costs, but added 'I am not sure that this will be enough even to cover the extra social care costs next year'.

"We now wait for the Local Government Finance Settlement 2022, due next month, when we will find out how the social care funding will be allocated and whether the government will give councils certainty by announcing a three-year settlement, or if councils will only get a one year settlement confirmed funding for 2023/24 only, which makes budget planning very difficult."

The council leader said the chancellor announced a review into the NHS workforce – but to be truly effective this would need to include the 1.6 million social care workers.

"The Conservative government still hasn't realised that the crisis in the NHS is inextricably linked to the crisis in social care," said Cllr Corcoran.

He added that while the National Living Wage increase is welcome, 'this will place an extra financial burden on councils, without providing any additional funding to meet it'.