The town - plagued by a string of attacks on pensioners - failed to make the Home Office's shortlist.

The decision - made just days before police were called to two alleged assaults in the town centre - will come as a major blow to traders, fed up with the rising tide of weekend crime in the town centre.

"This would have been a help to us and provided more peace of mind for traders and residents," said Knutsford-based Sgt Kevin Fryer.

Knutsford had bid for £108,000 from the Government to set up security cameras in King Street and Princess Street.

Traders and businessmen would have raised £40,000.

Last year Wilmslow, another town under Macclesfield Borough Council's control, secured £101,000 Government cash for its scheme.

This week, Macclesfield's technical services officer, Bob Broughton, said the council had competed with other areas in the North West.

"There are a lot of disappointed authorities out there and Macclesfield is by no means on its own," he said.

"Perhaps other authorities could demonstrate a greater need in terms of crime than we could for Knutsford."

The Government - with £50 million to give away - received more than 800 bids worth £350million.