JOBS could be on the line for firefighters in County Durham and Darlington if the Government refuses to help it out of a financial crisis.

A report to Tuesday's meeting of the combined fire and rescue authority says it estimates it needs £29.2m next year, but is only likely to receive £13.5m from Central Government.

Because of having a sparse, rural population, it received 1.1pc specifically for fires, compared to an average of 3.2pc nationally.

In April, setting a precept for the first time, the authority forecasts that it would have to charge £88 for band D properties in order to pay its way. But the Government has threatened to penalise authorities for big increases in council tax.

* It will need an extra £1.3m to meet the full cost of the national pay award agreed last year.

* Another £1.3m would have to be set aside to fund a sharp increase in firefighters eligible to take pensions..

* An extra £2m is needed to prop up in a new reserve fund for contingencies, especially pensions.

Chief fire officer George Herbert is also asking for £800,000 to pay for essential service developments.

Mr Herbert told the D&S Times that there seemed to be no allowances made for the financial costs of trying to meet the Government's demands for modernisation.

"It is a very worrying time and particularly disappointing because we went through a difficult time last year and people were just getting back to their enthusiastic, natural way of doing things. It is difficult to aim at modernisation when there are doubts about being able to preserve the service we currently provide."

The options were to ask the Government to give more money, or to relax punitive capping on council tax, otherwise service cuts would have to be made.

He could not rule out job losses, pointing out: "Most of the fire and rescue service money is spent on employing people."

The authority expects to hear its final financial figure from the Office of Deputy Prime Minister John Prescott next month.