It's a mistake losing the head with local rascal (5)
I believe the answer is:
error
'it's a mistake' is the definition.
('error' can be a synonym of 'mistake')
I can't explain the remainder of the clue.
Can you help me to learn more?
(Other definitions for error that I've seen before include "Mistake, lapse" , "Slip-up" , "Mistake or fault" , "Mistake from terrorist" , "Way of operating" .)