HYNDBURN Council is calling on MP Greg Pope to make sure the borough gets its fair share of local government funding.
When the Government introduced its new funding formula for local authorities in 2002 Hyndburn was one of those to benefit.
But a system of "floors and ceilings" was brought in to smooth the transition to the new formula, which meant that those councils whose grant from central government would increase did not get the full amount straight away and those whose was going down would not drop by the full amount straight away.
But at a meeting of the full council the portfolio holder for corporate governance, Councillor John Griffiths, said this meant that last year the borough missed out on more than £500,000.
He said: "The system was designed to protect those who previously benefited, but who would now be getting less, by reducing what those gaining from the new formula got.
"As a result Hyndburn ended up with £505,000 less than it was entitled to and that money was used to help authorities that are now losing out.
"If there is still to be a floor and ceiling system this should be paid for out of central funds and shouldn't be coming out of our share."
He added: "I am urging councillors to write a letter to Greg Pope to plead for our fair share for next year instead of being made to fund the transitional arrangements for the losers."
This was supported by Labour group leader Councillor Jean Battle who said: "It is only right that we should get our fair share."
But Coun Ian Ormerod urged members to be a bit more cautious. He said: "We have got to remember that the boot might be on the other foot at some point and we might be the ones losing out. This is why they bring in floors and ceilings.
"I can understand why central government has to use this type of formula because they will be getting pressure from the ones who are losing money.
"I would just be careful about jumping in with two feet and demanding that we get our fair share. I assume that after a period of two or three years we will be getting the full amount."
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