COUNCIL officials were warned yesterday that they will have to shoulder the blame if a multi-million pound legal battle goes against them.

Durham County Council is still locked in a cash wrangle with Darlington Borough Council - six years after the case was first brought to court.

The dispute began in 1997, shortly after Darlington split from the county council in a local government shake-up, with the borough claiming it was owed £2.2m from a £12m local development fund held by Durham.

An arbitration process ended with a decision that Darlington was entitled to the cash, as well as £1.1m in interest from the past six years.

But the county authority, which had to pay out up to £1m in legal costs, is contesting the award of interest and is taking the case to an appeal.

The move has been met with criticism from Darlington council, which said Durham was "adding to the burden of its tax payers" by fighting the case.

Yesterday, independent county councillor John Shuttleworth said losing the case could be costly to the authority. "We have got the top-notch legal people in here, but if it goes the wrong way, the officers will have to stand up and be counted," he said.

The £12m cash pot held by Durham was a mix of Government grants and council tax.

The county council believes it has a strong legal argument to take to the appeal. Its legal experts believe that, as the ownership of the £2.2m was uncertain over the past six years, interest should only be paid from the date of the arbiter's decision.

Darlington council has condemned the county council for what it calls "daylight robbery" and says the money "rightfully belongs" to its residents.