DISTRICT councils across Cumbria have been warned that cash allocated to a unitary authority fighting fund may not be legal.

Ian Bruce, chief executive of Eden District Council, recommended members of his own authority did not join the other five district councils in agreeing to use public money to find an alternative to Cumbria County Council's bid for a unitary authority.

A report written by Mr Bruce stated that he believed the total of £300,000 allocated by the district councils for a study could be challenged because any plan created with the money had not met the Government's deadline of January 26.

He also questions the legality of spending the cash on something that has not gone through the usual procurement channels.

The report, which members of Eden District Council supported, states that the track record of collaborative working between the district councils in Cumbria has been patchy, and claims the likelihood of shared services delivering major savings, at least in the short term, is unlikely.

"There is no guarantee that the Carlisle proposal will be considered by the Department for Communities and Local Government as it does not fit in with the clear timetable and process set out in the white paper.

"In this event, substantial public monies and officer time will have been spent on a fruitless exercise."

While Eden District Council has written a letter to minister Ruth Kelly opposing the county council's bid for a unitary authority, South Lakeland District, Barrow, Allerdale, Copeland borough and Carlisle City councils are continuing to work together on an alternative plan - based on enhanced two-tier working.

Peter Ridgeway, South Lakeland District Council's lead officer on the issue, said: "The white paper is very specific that the status quo is not an option and that for those areas where a unitary solution is not taken forward, enhanced two-tier working must be developed.

"The districts' choice to invest in this process is a legitimate and appropriate expenditure in reponse to the challenge from government to make plans to improve efficiency, leadership and service delivery within Cumbria."

l Some 150 representatives of town and parish councils from across Cumbria discussed the unitary bid after hearing presentations by representatives of Cumbria County Council and the district councils at Penrith.

The Cumbria Association of Local Councils (CALC) decided not to back the county council's bid in its current form, but has reaffirmed its view that a unitary local government arrangement is what Cumbria needs.

It has written to Ruth Kelly MP, Secretary of State for Communities and Local Government, and asked for the county council to be given time to have consultations with CALC, other organisations and communities in order to improve its proposal.