ROSSENDALE Council has finished the financial year in profit with £250,000 left in the bank, it was announced today.

The news comes just three years after the council faced a Government takeover for being ranked the worst council in the country.

The authority was also criticised for having the seventh highest spending per head of population compared to similar councils who did better with the same or fewer resources.

But now the council has hit all its targets with cash to spare.

The news means the council can plough back into its budget around £250,000 of surplus cash.

Last year departments were restructured in a bid to improve the situation after the District Auditor set the council a target of building up its reserves to £500,000 by March 31, 2006.

However, at the end of the 2004/05 financial year the council has been able to allocate the additional £250,000 to its reserves, while at the same time improving the performance of customer services such as recycling and benefit processing.

Today, council leader Duncan Ruddick said: "The council's number one priority over the last 12 months has been to restore financial stability in order to address the significant issues raised with us by the District Auditor and build a solid base to move forward.

"It is good to have been able to achieve this target early.

"This means that we can continue to improve our services in the next year."

Councillor Michael Ormerod, lead member for finance added: "These savings have been a major achievement by the council's employees and show that savings can be made without reducing services.

"Funds have now been identified to allow for continued improvements for our customers.

"We are now on course to having a good sound financial platform for continued savings and investment in key areas over the coming years."

In addition, the authority's housing service has turned round what was predicted to be an overspend of £300,000.

Council chiefs say it has been achieved through a combination of improved income collection and significant improvements in the performance of the housing repairs service.

Lynn Hurrell, Rossendale Council's director of housing said: "This shows that we have made real improvements with the housing service. Looking ahead into the next 12 months, Housing Stock Transfer, if it is approved by our tenants, will allow us to develop the service further, so that tenants have the standard of home and service that they want."