A bid to save a clifftop village from crumbling into the sea is falling apart.

Rother District Council is putting together a rescue package to shore up the cliffs at Fairlight, near Hastings, where it is predicted 155 homes will be lost to the sea over the next 100 years.

The council has spent £155,000 developing a bid for a £4 million Government rescue package but needs to spend another £89,000 to finish the job. It was agreed the Fairlight Cove Preservation Trust should foot the bill.

Villagers spent two weeks scraping together the cash, with pensioners raiding their savings accounts and using their childrens' inheritances.

But they are now refusing to hand over the cash.

Dr John Sinclair, chairman of the trust, said there was no point putting money into the application because councillors will not proceed with the plan unless they get 80 per cent of the Government's £4 million.

The Government never pays out more than 75 per cent and has indicated Rother would probably get only 65 per cent.

Dr Sinclair said: "It would be irresponsible for us to put our money into this as there is no way the council can get what it is demanding. We would lose our deposit.

"People have been incredibly generous donating to the fund but if the council insist on impossible targets from the Government there is nothing we can do."