PADIHAM'S historic Gawthorpe Hall is set to lose more than £100,000 a year in funding under cost cutting plans.

Lancashire County Council pays the National Trust £104,000 a year to lease the hall but wants to bring the agreement to an end.

But that would leave the Trust having to find that cash from another source to help pay for the running of the hall.

Civic leaders today spoke of their shock and called on the county council to re-think its plans.

The Mayor of Padiham, Councillor Andy Tatchell, said: "If they were to do that it would be extremely disappointing. Towneley is the jewel in Burnley's crown and Gawthorpe Hall is the jewel in Padiham's crown.

"Gawthorpe Hall is a major tourist attraction and I hope it does not go ahead.

"They have to recognise it would have implications for tourism and Padiham as a whole."

Secretary of The Friends of Gawthorpe Hall, Jean Miller, said: "We are very concerned about any changes or plans but cannot comment further until we know just what the plans are regarding the Rachel Kay Shuttleworth Collections of needlework at Gawthorpe Hall."

The move which would come into force from April, 2008, is part of plans by the county council to wipe millions off its budget to keep council tax increases down.

A report predicts the council needs just over £600million the next financial year and nearly £644m for 2007/08 to maintain services.

Once government grants have been deducted council tax will have to rise by 8.8 per cent for 2007/08, the paper says.

The National Trust site, which attracts about 25,000 visitors a year, was built in the early 1600s and was the home of the Shuttleworth family.

County councillor, Coun Chris Cheetham, whose remit the Elizabethan hall falls under, said it would take some time to conclude negotiations between the authority and the charity over the lease.

He added: "One of the reasons is if the county council withdraws it will still be possible for Gawthorpe to be retained by the National Trust.

"Secondly the cost is £100,000 a year which is not an insignificant sum. It is a matter of priorities."

Jane Watson from the National Trust refused to say how much the hall cost to run and what effect the £100,000 loss would have. But she said it had not been approached by LCC about the lease the authority has held for 33 years.

She added: "When that happens the National Trust will enter into discussions." A spokesman for LCC said half its cash was spent on staffing and the other half on general running costs.