KEY services in Lancashire could be boosted after the county council was given millions of pounds of extra funding by the government.

The settlement, which will mean an extra £22 million for the county council over the next year, could mean that controversial cuts to adult social care and bus routes are reversed.

Blackburn with Darwen Council also seems to have fared well in the latest round of government grants, with an increase of £6.8 million on last year.

The breakdown of the settlement is still being determined by councils, and its true impact on services will not become clear until budgets are set in the new year.

And the Local Government Association has branded the settlement "the worst in a decade", saying councils in some areas will be facing inflation-busting tax hikes and cutting services in order to balance the books and meet tough efficiency targets. The association claims some services, particularly adult social care, will suffer.

County council bosses had calculated their budget based on last year's budget - so Coun Anne Brown, cabinet member for resources, said she "had to be pleased" with an increase of 8.7 per cent.

She said some of the changes proposed at the recent draft budget, which could include controversial £330,000 cuts to bus services, could be reconsidered.

She added: "We haven't yet had time to work out the full picture but we're cautiously optimistic about what the announcement means for Lancashire."

Blackburn with Darwen council leader Coun Colin Rigby has vowed his coalition will not raise council tax beyond inflation next year.

Executive member for resources Michael Lee added: "On the face of it this looks like a good settlement for the borough which is higher than the national average.

"However, we will have a better picture of what this means as we work through the detail."

Other councils in East Lancashire received smaller increases, with Burnley - which provides services in the borough alongside Lancashire County Council - getting a rise of just 1.2 per cent.