ROSSENDALE could be losing out on more than £2m a year by not charging for car parking, according to a senior councillor.

Former Whitworth mayor Coun Alan Neal said the loss means ratepayers are having to subsidise motorists.

But the claim has been dismissed by Rossendale's Council leader Duncan Ruddick, who said the figures were way out. He said: "Councillor Neal is in Cloud Cuckoo Land. If we were to introduce a reasonable level of car parking charges they would produce about £70,000 each year.

"In fact the Labour party in the last budget put in £68,000 in respect of the introduction of car parking charges although they didn't have plans for the charges to be introduced."

But Coun Neal, an Independent member, said he has spent time with the authority's chief finance officer Phil Seddon working out the figures.

A disc parking scheme was introduced to car parks in Waterfoot and Rawtenstall last year to help alleviate parking problems in the towns. The scheme allows visitors two and a half hours of free parking.

Coun Neal said: "Central Government assumes that every local authority charges for car parking so they deduct that from the Standard Spending Assessment grant. We effectively lose £1m from Central Government because we don't charge for car parking and we also lose revenue to the tune of £1m.

"This is calculated for the whole of Rossendale during the working week from 9am to 5pm.

"I object to subsidising motorists as a householder as everyone who has a car understands that there is a cost. There is a lot of people in Rossendale on low incomes including pensioners who can't claim council tax benefits. We could charge 20p for parking for 20 minutes - if you go to Rochdale it's 50p and if you go to Burnley it's the same.

"I am concerned that over the past three years we have missed out on £6m and since 1997 council tax has gone up 123 per cent."

Controversial plans to charge for car parking in Rawtenstall went out to public consultation in 2003 which were later rejected and the disc parking scheme was implemented.