The leader of a cash-strapped Labour council has sparked outrage after handing himself a 33 per cent pay rise.

Cambridge City Council leader Cameron Holloway will be paid £31,276 a year compared to his previous amount of £23,459 - when the allowance was last reviewed.

Holloway, who only became leader in May, will get the pay bump despite the council facing a £3.6million budget gap.

The council is also giving out grants of up to £30,000 to projects, including crockery lessons for asylum seekers.

A council spokesman told The Telegraph the pay increase "reflects the step-change in workload in recent years and additional responsibilities linked to the pace of growth in Cambridge, and work with the Cambridge Growth Company”.

The spokesman added that leaders at the council "regularly work 60+ hours" a week.

"Without offering a level of remuneration comparable to the national living wage, the position of leader would be restricted to retirees and the independently wealthy," the spokesman said.

"Which limits opportunity for good candidates to put themselves forward."

CAMBRIDGE CITY COUNCIL

However, Conservatives consider Holloway "work-shy", with Tory MP Paul Holmes alleging Holloway "has been caught with his hand in the till".

As well as the salary, councillors are also paid an allowance - intended on reimbursing them for their time and expenses for working outside their local council.