LANCASHIRE taxpayers will have to pay the bill for a two-day High Court battle brought by Lancashire County Council in a row over home rule for Blackburn and Blackpool.

The council took Environment Secretary John Gummer to court, claiming his advice to the Local Government Commission had been "skewed and slanted" in favour of unitary status.

But Mr Justice Judge threw out the case and awarded undisclosed costs against the council.

Blackburn and Blackpool are among 21 boroughs nationwide who are waiting for a recommendation from the Local Government Commission over whether they should be allowed to become all-purpose authorities, responsible for delivering all services.

One estimate forecasts a £4 million bill to set up two unitary authorities.

Blackburn Council leader Malcolm Doherty today blasted the court case as a "waste of time and money". "I am pleased the review can now continue, but sad that it had to go to court and ultimately hit the taxpayers of Lancashire.

"The Local Government Commission can now judge the arguments for and against unitary status on their merits rather than a judicial ruling.

"This has been a delaying tactic by Lancashire County Council which has not paid off."

County council deputy clerk Mr Max Winterbottom said after the hearing: "We believe there will be financial turbulence if one or two unitary districts are created. There will be a loss to the strategic mass on the county council, and we believe there will be a fragmentation of services.

"We think there will be disruption which will continue for a long time. But most importantly there will be an increase in costs.

We estimate it will cost £4 million to set up two unitary authorities in Lancashire."

Council leader Louise Ellman said: "We are most disappointed at the decision but are pleased to have been given leave to appeal. We are consulting lawyers.

"A judgement in our favour could stop the review for the whole of the country.

"We will continue to argue the case for Lancashire. We remain convinced that the second review of local government in Lancashire could cost Lancashire people £10 million per year extra."

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