Two local councils are on the brink of a major fallout as a bitter row over the funding of a £2.5m community centre continues to escalate.

Easton Parish Council has hit out at leaders of South Norfolk (SNC) over "misleading information" which could potentially derail the multi-million-pound project.

Norwich Evening News: Inflation has pushed the cost of the project up to £2.5mInflation has pushed the cost of the project up to £2.5m (Image: Patrick May KMC Consulting Ltd)

The parish council has been forced to borrow £500,000 from the Public Works Loan Board after SNC rejected its application for the same amount. 

But vice chairman Peter Milliken has accused SNC leader John Fuller of providing misleading information - casting fresh uncertainty over the future of the partly-built centre.

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"We have applied for a loan but regrettably we received misleading information from Cllr John Fuller," he said.

"And the process is taking longer than expected because we also now have to obtain permission from the Secretary of State for Levelling Up.

"It is also more complex than initially conveyed by Cllr Fuller.

Norwich Evening News: Vice chairman of Easton Parish Council, Peter MillikenVice chairman of Easton Parish Council, Peter Milliken (Image: Newsquest)

"We have unfortunately experienced a delay in meeting the planned opening date as we await approval from Norfolk County Council for the footpath provision to the new community centre.

"However, despite this setback, progress is continuing on-site, with the installation of lighting protection, the laying of pathways and the installation of air circulation terminals."

The community centre has faced a number of setbacks since work began last year - with the project's main contractor falling into administration in May. 

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The parish council said it would need to raise more cash after delays and soaring inflation pushed the cost of the building up from £1.5m to more than £2.5m.

A row erupted between Easton and SNC after district council bosses rejected its application for  £500,000 of funding - a decision Mr Milliken said put the scheme "in serious jeopardy".

Mr Fuller feels there is little more SNC can do to help though.

Norwich Evening News: Cllr John Fuller, leader of South Norfolk CouncilCllr John Fuller, leader of South Norfolk Council (Image: Rose Sapey)

He said: "Local councils provided two-thirds of the projected cost of the building with a series of grants totalling £1m towards the £1.5m cost.

"The project has been managed by the parish council but it has been allowed to run £1m over budget.

"We have directed them to the Public Works Loans Board, which exists to help councils of all sizes to finance local infrastructure schemes with funds normally made available within a few days subject to normal conditions."