Harwich MP Ivan Henderson has accused the leader of Essex County Council of "scaremongering" over funding.
Mr Henderson hit out at Lord Hanningfield over claims that funding to the county council would be cut over the next few years.
But county hall has responded angrily and said Essex will be faced with a serious funding shortfall.
Cabinet member Steve Castle said: "It is clear that the Government's settlement for Essex is way below that for the rest of the country."
But Mr Henderson said he had written assurances from local government minister Nick Raynsford that Essex will not miss out and that fears about a progressive withdrawal of grants were unfounded.
"This pathetic scaremongering must stop," said Mr Henderson.
"The manner in which County Hall is trying to mislead and scare the public is absolutely outrageous. Lord Hanningfield must produce his evidence or apologise to the people of Essex for his behaviour."
Published Wednesday, April 16, 2003
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