New figures reveal that is how much it cost just the agencies alone, and not the insurance companies to clean up after firebugs, who set cars, homes and shops on fire across Peterborough.

In comparison, it cost Fenland £2.5million to deal with the damage, while Huntingdonshire came in third at £2.2million.

The total cost for all agencies in Cambridgeshire in 2007/08 for dealing with the three main types of arson was just over £14.95 million.

Fire chiefs said Peterborough's diverse and growing population was one factor for the huge bill, but said most incidents had dropped over the last year.

Mike Fowler from the Arson Task Force (ATF) at Cambridgeshire Fire and Rescue Service said: "Although we are delighted that there has been an overall decrease – including some significant reductions - we are still concerned that some districts have an increase in specific types of arson.

"This is why statistics like this are so important, as they enable us to identify where the problems lie so we can target these areas in our campaigns in the future.

"Peterborough clearly presents specific issues, although, last year there were significant decreases in fires. It's a major city and has changed significantly in the last 10 years. Due to the increased population and types of communities, you get certain issues that could arise as a result."

This year, car fires showed the most dramatic decrease, down from 297 in 2006/2007 to 183 in 2007/2008.

In total, there were 752 incidents of arson reported in Peterborough between April 2007 and April 2008.

The majority were rubbish fires (335), followed by vehicle fires (183) and grass/heath fires (52).

There were also drops in residential properties, derelict buildings and sheds being deliberately torched.

The only rise was in arson attacks on non-residential buildings, which increased slightly from 77 to 81.

In 2006/7 a total of 1,119 incidents were reported, and 1,129 in 2005/6.

Cambridgeshire Fire and Rescue Service said a number of initiatives had helped reduce arson incidents in the city, including the work of the ATF and a mullti-agency team running campaigns and educational programmes to drive arson down.

These included environmental action days, abandoned car removal schemes, youth work and school visits, including the commissioning of a theatre company to tour schools across the county delivering a hard-hitting play called Arson About, which warns young people about the dangers of arson.

And with the summer holidays just weeks away, police urged parents to warn their children about the dangers of playing with and starting fires.

Any parents worried that their child has an unhealthy interest in fire and has been known to start fires, should ring their local fire station and ask about the Fire Setter Intervention Scheme.

Fire officers will visit the family and speak to the child about the dangers of fire.