A COUNCIL'S coffers were boosted this week when it discovered it was owed a rate rebate of almost £900,000.

The money is backdated to 1995, when Darlington Borough Council first queried the amount the Government was charging in rates for the town's Dolphin Centre.

Now, after a lengthy inquiry, the Government has admitted it has overcharged the council by £100,000 a year.

Councillor Don Bristow, cabinet member for finance, said: "These things take an interminable time but, all of a sudden, they contacted us to say they agreed we had been paying too much and were sending us a cheque for over £900,000, which is really good news."

As well as the windfall, the council will save money on future rates for the Dolphin Centre.

The money comes after the council's victory in a battle with Durham County Council to secure shares in Teesside and Newcastle airports.

Last month, the county council was refused permission to appeal to the high court against an arbitration decision in favour of Darlington last year.

Now Darlington will receive 66 per cent of Durham's shares in Teesside Airport and 16 per cent of its shares in Newcastle Airport.

Last week, John Williams, leader of Darlington Borough Council, accused Durham of rejecting an "olive branch" to settle the dispute when he offered to share responsibility for a landfill site which Durham was ordered to take on after arbitration, but does not want.