ELLESMERE Port and Neston Council Tax-payers will lose out due to a Government clanger, according to Cheshire County Council.

Mistakes in the calculation of population figures for the 2001 Census have led to a recalculation of the 2003/4 Local Government Finance Settlement.

And the Office of the Deputy Prime Minister has told county councils readjusting the figures will mean a massive £25.9m clawback - at least £1.2m in Cheshire.

The cash is to be deducted from councils' revenue support grants for 2005-6 and will be handed over to areas where the population was underestimated.

County councillor Gretta Cousins, executive finance member, said: 'Whitehall made the mis-take in the first place and should pay the price.

'Instead, Cheshire will have to pay back £1.2m, which, of course has already been spent and which we can ill afford to lose.

'The Government has delayed a decision on the recalculation of last year's settlement, which could again cost us dearly.'

Cllr Cousins has already warned that Cheshire faces a difficult time trying to cope with the difficulties posed by growing service demands and inadequate government funding.

'The Local Government Association has warned of Council Tax rises of 10% simply to stand still, which is more than 3% per cent more than the Government is said to be planning for,' she said.

One of England's small group of excellent-rated authorities, Cheshire's ruling Tory group says it has managed to strike a balance between first-class services and the lowest Council Tax rise of any shire over the past three years.

Cllr Cousins went on: 'We have said there could well be a substantial funding gap between what we might want to do and what we are able to do.

'Being subjected to a £1.2m smash-and-grab raid is hardly helpful to anyone at this moment in time - particularly the Council Tax-payers.'