Council bosses have hit back at criticism of their funding reduction to Macclesfield’s Silk Heritage Trust.

As reported in the Express last week, the Silk Museum’s main Park Lane site will close down on May 1.

This was confirmed yesterday (Tuesday) following a meeting of the trust board of directors.

The closure will leave three remaining trust-run sites; Paradise Mill, also on Park Lane, West Park Museum and the Heritage Centre.

The trust claimed it had been forced to shut what amounts to a third of its display space because funding from Cheshire East Council has been reduced in 2010-11 by £20,000, requiring savings of their own of £30,000.

In addition, trust director Richard de Peyer said that an ambitious bid to establish a national silk centre in Macclesfield was now over because additional council funding was crucial to securing a grant from either the North West Development Agency (NWDA) or Heritage Lottery Fund.

But Councillor Andrew Knowles, cabinet member for health and wellbeing, said: "Some recent media reports have suggested that the trust is dependent upon additional funding from the council to fulfil its aspiration of becoming a National Silk Centre.

"This is incorrect and we feel it is important to set the record straight to prevent any further misleading reports.

"Funding from other organisations including significant sums from the North West Development Agency (NWDA) and the Heritage Trust is vital to the trust’s proposals.

"We understand that no funding bid has yet been submitted to the Heritage Trust while the NWDA has instructed the trust to revise its plans before they can consider its bid."

He said the trust had asked for an additional £130,000 a year on top of an annual grant of £126,000 and £20,000 worth of business support. Cheshire East had repeated a £20,000 grant provided by Macclesfield Borough Council in its final year and that the Trust had been aware of its annual funding since 2008. Funding would continue for the "foreseeable future," he added.

He added: "It would not be sensible financial management if the council were to commit to providing such a significant sum of money, year on year, to a business which is sadly failing."

Mr de Peyer acknowledged it was a funding ‘reduction’ rather than a ‘cut’ because the trust had been effectively getting extra until this year. A Silk Heritage Trust spokeswoman said yesterday said it had been forced to choose between a reduction of service or developing a national service because of rising costs.

She added: "The more ambitious approach has been pursued vigorously, with the possibility of collaboration with the Embroiderers Guild, and grants were tentatively offered by the North West Development Agency and Cheshire East.

"Unfortunately after 12 months of discussion Cheshire East Council were unable to commit further resources to this project, and the trust is now withdrawing its capital grant application to the NWDA and advising the Embroiderers Guild and national museums of this outcome."

An NWDA spokeswoman confirmed to the Express last week that an application had been submitted. The Heritage Lottery Fund said it had not received any bid.