COUNCIL chiefs have agreed to settle a £5,500 taxi bill after the Lancashire Evening Telegraph raised concerns that the cab firm involved could go under.

Gemini Travel owner Paul Warchalowski contacted the newspaper to hit out at social services, saying its failure to pay up was threatening to ruin his business.

He has a contract with the Lancashire County Council department to ferry a seven-year-old Bacup boy, in foster care, to a primary school almost 20 miles away and back but, despite supplying the service, he has not been paid since September.

Mr Warchalowski said he has been forced to cancel a holiday, and claimed to be facing a financial crisis as the bill mounted.

He stopped the service as schools broke up for the Christmas holiday and instructed his solicitor to take action.

But, following the Evening Telegraph's intervention, the council has agreed to stump up the money.

A spokesman said: "This is a simple oversight in terms of an internal administration error. We have authorised immediate payment today for the outstanding invoice incurred, along with a letter of apology to the firm."

Mr Warchalowski said he was grateful to the newspaper.

Before the council's change of heart, he described how the case was financially crippling him.

The Bacup taxi boss was originally hired by the council's education department, who paid promptly every month, to taxi the child to school, but the contract switched to the social services department in September.

It paid for the first two weeks, but then payments suddenly dried up.

Mr Warchalowski said: "It's caused major problems. I have VAT bills ready to be paid, and we have had to pay diesel bills and wages. We are just about surviving at the minute.

"I was supposed to be on a weekend away in November, but had to cancel it as I'm not getting any money in."