Green Party members on Lancaster City Council are angry because the deferment will cost the authority £18,000 in interest.

The money is due on two power stations the firm runs in Heysham, Lancashire.

British Energy said it needed to delay payment to help its financial restructuring process as it battles against insolvency.

We've wasted [opportunities] by bailing out a multi-national company

Councillor Gina Dowding

The firm owes just over £1.7m to the council for one month's business rates.

But councillors voted to allow the deferment at a meeting held in private.

Councillor Gina Dowding, along with other Green Party members, voted against the move because of the interest due .

"The priority for local people are things like street cleaning.

"We're trying to get recycling going and we've got a waiting list to introduce traffic calming schemes.

"So there are a lot of things that could have happened that will not now happen because we've wasted this opportunity by bailing out a multi-national company that's just been bailed out with millions of pounds from national government."

A British Energy spokesman stressed it would pay the bill next February.