A cash-strapped council faces a £320,000 bill to repair a medieval barn used as a community centre.

Adur District Council has admitted it does not have the money to pay for the work at Kingston Barn, Shoreham.

It may be forced to take out a loan to cover the costs which could result in a council tax rise of £1.25 a year for all Adur payers.

It is also considering asking English Heritage and other conservation groups for help.

The barn was closed in March after cracks were discovered and a survey revealed the 11th Century building in St Julian's Lane could fall down at any moment.

An engineer's report concluded that a "catastrophic failure of the roof and south wall" meant there was an "imminent danger" of collapse.

The problem is believed to have been caused by the weight of concrete roof tiles which were put up when the barn was reroofed more than 30 years ago.

Emergency work costing £22,000 was carried out to shore up the walls and the barn has remained shut ever since.

Adur's housing committee will decide on Tuesday what action should be taken to secure its future.

The council has revealed debts of £24 million and is slimming down its operation from four departments to two in a bid to save money.

Fifteen senior managers will lose their jobs as a result.

The council has also abandoned plans to merge with Worthing Borough Council because of the costs involved.

A report to the housing committee says the council's budget for this year has already been allocated.

It says that because the barn is a listed building the council had little choice other than to do the work needed.

Officers say one way of raising the money would be to take out a £300,000 loan.

The charges involved would be £7,500 this year but would increase to £27,000 in following years.

The report say that would be equivalent to a 0.6 per cent council tax increase, or £1.25 a year per payer.

The building is leased as a base by Kingston Barn Community Association and other local groups.

Chairman Brian Taylor said: "The work could take two years to do and our lease on the building expires in 2008.

"It is unlikely that any of the groups who were here would want to move back in after that time.

"Of course the building should be saved but we are not very happy about the way things have been done."

The council also revealed in the report that it could face a claim for compensation from a neighbouring landowner to add to its money worries.

Bill Turrell, who owns stables at Slonk Hill, Shoreham, allowed the council to put up scaffolding to protect the barn's rear walls.

Mr Turrell also owns the land at the back of the barn which includes two cottages converted from former stables.

One is occupied but the cottage attached to the barn cannot be used because of the danger of the shared wall collapsing.

The council agreed to redesign and reposition supporting scaffold in the shared yard behind the barn after receiving complaints about its size.

Mr Turrell did not want to comment yesterday.