The mystery of Bradford's missing millions grew today as it emerged 1,500 people appeared to have "vanished" from the district.

Stunned Council officers have been told by the Government that the population of Bradford - one of Britain's "fastest growing" cities -- has fallen from 483,400 to 483,000, a drop of 400 in just a year. But figures recorded by the Council and business chiefs showed an increase of more than 1,650, from 482,850 to 484,500.

The statistics - based on 1996-97 figures (the last recorded) - show a gap of 1,500 people which has apparently led to a shortfall in Government cash for the district.

The shock of the shrinking population came as the Government gave the reasons for Bradford Council's financial settlement which is the worst of the five West Yorkshire authorities. The Registrar General's office believes the number of people moving out is a major cause. But Council leader Ian Greenwood says he finds it unbelievable and wants to challenge the figures, which could mean a loss of £900 per head in grant.

The Council has been told a drop in school rolls by more than 600 is also a factor in the complicated calculations. But, if the figure is right, the district is facing a possible 4.5 per cent inflation-busting Council Tax rise with predicted cuts of £3.5 million.

The Government estimated in its settlement that the Council needed £441.3 million to run its services although City Finance Officer Steve Morris predicted last July that £465.7 million was needed for just a standstill budget. He then said his estimate had been reduced but was unable to say by how much.

A report compiled by the Council and Bradford Training and Enterprise last February says Bradford's population has been growing steadily and is forecast to grow at a rate of more than six per cent, compared with 0.6 per cent of the Metropolitan districts by the year 2001. The Council has based its plans for housing and services on the statistics based on figures including births and deaths.

No comparisons were available from the Government or the Council about the school rolls. But Councillor Greenwood said: "I was very shocked when I saw the figures. We have always been told Bradford is a fast-growing city. There can be explanations for dropping school rolls - but not for a population drop."

A Department of Transport and the Regions spokesman said the population was the main reason for the settlement it awarded the Council but said it was now in a period of consultation about the settlements.

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