COUNCILS are battling to balance their books amid “huge” fuel price increases and budget problems.

Blackburn with Darwen council’s ruling executive board insists services will not be cut in the leisure department, which is facing a shortfall of almost £400,000.

The council is having to swallow a 30 per cent increase in its gas contract, which was renewed in April, and is expecting a 50 per cent hike in its electricity bills when that deal is renewed this month.

Together the town hall energy costs are set to rise by £850,000 a year.

The regeneration portfolio is also facing losses of more than £500,000, but bosses say this can be recovered as it only represents a small part of the department’s total budget.

Executive member for resources Mike Lee reported “budget pressures” of £378,000 in the leisure and culture department at an executive board meeting on Thursday night.

Bosses admit the deficit is too big to recover in one year without cutting services, and have put in place a three-year action plan.

Coun Lee said: “We are not closing things. That’s why we’ve had to phase it in gradually.”

He insisted the council’s £6million scheme to drop leisure charges would not impact on budgets.

Labour leader Kate Hollern said “Obviously it’s a worrying time for everyone.

"But we are being told money will be saved and not how it will be done."