TORY borough councillors have been accused of plotting to wipe out Canvey Town Council by a senior town councillor.

Former town council chairman Dave Blackwell has categorically denied rumours the town council is not insured to cover compensation and court costs, which could be over £76,000 if one of its previous clerks, Julie Abel, wins her claim for unfair dismissal.

He insisted this was part of a whispering campaign by Tory Castle Point councillors aimed at undermining the smaller town council.

Mr Blackwell, who is also leader of Canvey Independent Party on the borough council, said: “We were told from day one we were completely covered for this case, and have nothing to worry about.

“This malicious rumour was part of a plot by certain Tory borough councillors to wipe out the town council.”

He added Bill Sharp, a Castle Point Conservative councillor for Hadleigh, suggested scrapping the town council at a recent full Castle Point Council meeting.

Mr Blackwell said: “I would have thought David Cameron’s Big Society ideas are all about more localised government.

“A lot of the Tories on the borough council have had it in for us since they failed to get any Conservatives, other than Ray Howard, elected to the town council.

“If the borough council has to cut its services because of Government funding cuts, we could actually end up taking over some of the services from them.”

Mr Sharp insisted he does not have a vendetta against the town council.

He said: “It’s just a question of financial logic. The question needs to be raised.

“Do we really need two tiers of costly local government?

“It’s wrong of David to suggest I was behind the rumour about the lack of insurance. I know very little about that story, although it does worry me the town council has already managed to lose two clerks.”

The town council’s first clerk, Julie Abel, left the authority in June 2009, following two months off with stress. Her successor John Burridge also left.

The town council costs taxpayers £266,000 a year, of which £133,000 goes on administrative and running costs, such as paying staff and hiring office space.

It has taken over management of Canvey Lake from the borough council and hopes to save a seaside paddling pool by the Concord Cafe from demolition.