COUNCIL bosses in Burnley have been in a clash over a £900,000 underspend which it is claimed could have led to lowered tax bills across the borough.

Council resources boss Coun Mark Townsend said that the sum, from the 2012-13 budget, would be placed in a contingency reserve, which currently stands at £6million.

Burnley MP Gordon Birtwistle, who still sits as a borough councillor, said: “One per cent on our council tax bills in Burnley equates to around £62,000, so two per cent is around £134,000 or £135,000.

“Just a small amount of that underspend could have been used to prevent a two per cent council tax increase and might have softened the blow for the people of Burnley, when we have £6million sitting in the bank.”

But Coun Townsend said that the suggestion showed that Mr Birtwistle was becoming the ‘clown prince of irrelevance’.

He told a full council meeting that £3million worth of cuts had been factored into the current financial year.

And also other provisions would have to be made for future years.

“We have got a £5million black hole in our finances in three years’ time.

“And he is fiddling around over £100,000 with council tax,” said Coun Townsend. His coalition is trying to destroy councils like ours with the financial constraints that they are putting on us.

“We need that £100,000 to help us balance our budgets going forward. If you really want to do something then bother the Communities Secretary Eric Pickles and get us some decent funding for our town.”