A CEMENT plant closure could lead to cuts in council services if workers move with their families to take up their company's offer of new jobs out of the area.

Bosses at Lafarge UK's Blue Circle works at isolated Eastgate, County Durham, do not want to lose the skills of experienced staff and are encouraging many of them to move to plants in Derbyshire, and Dunbar, in Scotland.

But every person who leaves would cost the local authority, Wear Valley District Council, about £100 - on top of its lost share of the £400,000 the company pays the Government in business rates.

Council leader Olive Brown fears the authority could lose up to £20,000 a year.

She said: "It could mean the funding for the district will fall by £100,000 over the next five years and a consequent reduction in our services, which would have a devastating effect on our people."

Unions representing Eastgate's 150 workers are trying to arrange a meeting with Prime Minister Tony Blair next week, hoping that he will help to save their jobs.

They want the firm to explore interest in the plant by a consortium led by Weardale businessman Angus Ward, and a European operation contacted by Durham County Council's chief executive, Kingsley Smith.

Mr Blair's spokesman, John Burton, said: "We have been closely in contact with Mr Smith and are looking at ways of seeing if we can help."