Bury Town Council could have to hand back a £3,000 grant it received for running this year's Christmas lights. County councillor Paul Hopfensperger, who administered the grant to the town of Bury St Edmonds, said the lights had been bought for less than had originally been expected.
Suffolk County Council has written to ask for the money, awarded from Cllr Hopfensperger's locality budget, to be returned. Town council chairman Richard Rout has fought back against the request, saying he is confident the money has been used correctly and therefore should not be returned.
Cllr Rout told the Bury Free Press: "I'm disappointed, but not surprised by his request.
Many members of the Christmas lights committee and the council have, quite rightly, raised the issue with me and stated that they have no intention of seeing the funding returned.
"Despite the assertion in the letter, the funds are being spent as originally intended and, therefore, the Christmas lights project is well within its rights to retain the donation."
Cllr Hopfensperger, who represents Bury St Edmonds' Tower division, said he had approved the grant to make up a funding shortfall, but that town centre manager Steve Peters had subsequently eliminated the shortfall by negotiating a lower rate for the lights. Therefore, argues Cllr Hopfensperger, the money should be returned.
Mr. Peters said: "The cost of the project hasn't changed at all since day one. It's very disappointing. A lot of people have been working flat out and, especially in today's economic climate, we need the Christmas season - we agreed that politics would be kept out of the Christmas lights."