COUNCIL jobs are to go in Rossendale as town hall chiefs aim to slash up to £450,000 from budgets.

Council leader Alan Fishwick dismissed rumours that more than 40 jobs could be axed in a major review of costs and services, but agreed that over 20 posts could disappear.

He said: "We have given formal notification of our intention to reduce salaries by a maximum of 10 per cent.

"That could mean a saving of £450,000, but the number of jobs involved depends on the kind of jobs to go and salary scales."

News of the proposed cut-back follows this week's publication of a critical District Auditor's report which tells Rossendale Council to get its financial house in order.

Auditor Tim Watkinson says the council's financial position is deteriorating, with significant sums transferred from bank balances and he calls on the authority to maintain balances at an adequate level.

In his letter to councillors, he points out the highways team which lost £112,000 last year is heading for a further deficit.

He says the council has failed to take action recommended by the auditor to recover overpaid housing benefits and warns this could lead to significant losses for the council.

Mr Watkinson calls on the council to tackle as a matter of urgency the lack of coverage of the main financial systems by its internal audit section. And he adds that the council's arrangements for the publication of information on how the council is performing are not satisfactory.

Coun Fishwick said the council hoped to make the job cuts via voluntary redundancy, natural wastage and re-deployment of staff within the authority.

"It is all part of the major review and the staff and unions are being kept fully informed."

Coun Fishwick said there would be no swift cuts and the process would be phased in over the year.

He added the council expected to suffer a £150,000 deficit on a £8 million turnover in the current financial year, far less than some figures which had been bandied about.

He said the authority had been forced to meet unexpected extra costs this year as well as cope with expected increases in spending.

"The fact is we need to save money and a general review of staffing is part of that process."

Coun Fishwick said changes in the patterns and levels of service meant the council had to re-define priorities and some posts not now considered to be vital had to go.

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