THE future of East Lancashire's largest steam engine hangs in the balance due to a museum’s ‘swingeing’ highways drainage charges of over a thousand pounds.

Bancroft Mill Engine Trust in Barnoldswick, which preserves the last remaining two-cylinder cross-compound steam engine at its museum, said its 'very existence' is now at risk as it cannot pay highways drainage charges.

Community leaders said they were 'appalled' the trust could be forced to close and warned the loss of the engine would be a major blow to the area's industrial heritage.

The trust, based in Gillians Lane said the charges, which have been levied by United Utilities and their successor company Water Plus, amount to over £1,100 a year and is around 10 times the trust’s annual bill for water and sewage.

Trust bosses said that without a 'major reduction' in the charge or 'significant additional financial support', they will have no funds for essential maintenance on the boiler and chimney and thus will be 'forced to wind up the charity in the next few years'.

Historian Roger Frost, who is also a councillor in Burnley, said: "If this trust is forced to close, it would be major loss to the industrial heritage of Barnoldswick and the surrounding area.

"The engine is one of the last surviving elements of the town's cotton industry heritage."

Pendle Council's deputy leader, Cllr Tony Greaves said he and Craven's Liberal Democrat borough and county councillor David Whipp would do everything they could to save the engine.

They were backed by borough MP Andrew Stephenson who appealed for a compromise to be found over the bill.

The possible closure of the Bancroft Mill Engine comes as there is still no decision on the future of two other industrial museums Queen Street Mill in Burnley and Helmshore Textile Mill.

Both museums were closed by Lancashire County Council after English Heritage declined to take them over.

Cllr Greaves said: "I and Cllr Whipp are very concerned about his.

"It is appalling that a charitable trust should face such a high highways drainage bill and we will seek a compromise between the company and the trust."

Mr Stephenson said: "I am aware of the situation and am very concerned about the future of this important piece of industrial heritage.

"I would be appalled if we lost it because of a ridiculous row over a utility bill."

Built by William Roberts of Nelson, the 650 HP engine powered Bancroft Mill in Barnoldswick from the day it opened in 1920 as the town's thirteenth cotton mill until it closed at the end of 1978, by which time it was the last mill running in the town.

Tony Nixon, treasurer of Bancroft Mill Engine Trust, said: "The existence of the trust, and hence the engine, is now under threat as a result of swingeing highways drainage charges being levied by United Utilities and their successor company Water Plus.

"This charge is a flat rate annual charge based on the area of the site.

"At over £1,100 a year this is around 10 times the trust’s annual bill for water and sewage.

"As a registered charity, there is a statutory discount of 80 per cent on their business rates but there seems to be no exemption from these unfair highways drainage charges for charities.

"Buildings such as Scout huts and places of worship do pay a much-reduced charge, but this does not apply to charities generally."

The charitable trust was established in 1986 to look after the steam engine and includes some former employees of the mill.

With assistance from Pendle Council, the volunteer-run trust preserved the engine, boiler and a small number of the buildings with regular maintenance.

Mr Nixon said: "The trust has so far resisted making payment and they have not been pressed for payment us for several years until last month.

"If they pay the arrears it will wipe out their development reserves in total and the ongoing annual payment is likely to absorb their small annual operating surplus."

A spokesman for Water Plus said it will continue to work with the trust to help spread the charges.

He said: “We have applied as many concessions as we are able to given the nature of the charity.

"The remaining charge is the lowest we are able to charge under the regulated wholesale charges.

"Over a number of weeks we have worked with the trust to try and find ways to reduce this but we have been unable to."