UP to £1million from the sale of Blackburn Infirmary could be used to help cover East Lancashire hospitals' massive debts.

Finance bosses at East Lancashire Hospitals NHS Trust are predicting they will end the financial year £5.5million in the red.

They have already warned that it may take up to three years to clear the debt after 'draconian' planned cuts failed to yield the savings they hoped for.

But the sale of Blackburn Infirmary, which bosses said last year expected to raise £4million, could free up enough cash to cover around a fifth of the overspend.

The wards and services provided at BRI are to due to move to the new £110million superhospital being developed at Queen's Park Hospital next year.

The most likely buyer will be Blackburn with Darwen Council, because the site falls within one of the Elevate pathfinder intervention zones, and is earmarked for housing.

Stephen Brookfield, acting director of finance at ELHT, said: "There is a potential gain of up to £1million of the disposal of Blackburn Royal Infirmary.

The trust currently has an overall deficit of £5.449million, which is up from £5,022 in January.

"We still expect to end the year £5.5million in deficit."

The debt is up from £3.9million at the end of 2003/04 financial year. Blackburn's acute hospital services have missed their savings target by £844,000; Burnley's acute hospital services by £850,000; womens and children's services by £904,000 and corporate services by £116,000.