Bradford Council will sit on a £2.9 million "windfall" until decisions are made on the budget in March.

The move to set aside the surplus cash was made despite calls for it to be used as soon as possible for other priorities and crises, including the impending closure of the Priestley Centre for the Arts.

The Labour Group called at last night's meeting for £50,000 of the unexpected surplus to be used to enable the Priestley Centre to work on a rescue plan.

Councillor Ralph Berry (Lab, Wibsey) said the Council should not just sit back and allow the centre to close on Monday and go into voluntary liquidation but should try to help it.

Labour councillors also called for £350,000 to be used to replace the same amount previously cut from the allocation to fund voluntary groups.

Councillor Val Slater (Lab, Wibsey) pressed for it to be used to set up an appeals procedure for groups which had failed to win funding recently after an "unfair" new process was set up.

Labour also proposed allocating £1.3m to schools, £750,000 for environmental improvements including immediate action on "grot spots" and £50,000 to each of the district's five anti-crime partnerships to run pilot summer projects for young people.

But deputy council leader Councillor Simon Cooke (Con, Bingley Rural) said: "None of us want to see the Priestley Centre close but to suggest we squander public money on a whim is appalling. The Labour Group doesn't understand the fundamental principle of spending other people's money responsibly. They will fork out to anybody who turns up with a begging bowl. This is cheap and crass."

The Council's executive member for community, Kris Hopkins, said the authority set aside £5.6m for the district's voluntary groups - probably the largest sum allowed by any British Council.

He said they were looking into the new system of commissioning services from groups rather than just allocating groups and realised work needed to be done to address weaknesses.

The windfall has arisen because of a reappraisal of the rateable value of theatres, the budget set aside for Education Bradford bonus payments which was not paid in full and the dividend from Leeds Bradford Airport. It was agreed to keep the money for consideration at budget time and to invest it in the Council's priorities.