A COUNCIL cash crisis could mean job cuts across the county and a rise in the cost of schools dinners, with council tax set to go up by £88 for the average Preston household.

Council bosses blamed the problems on Blackpool and Blackburn becoming unitary authorities, leaving the Lancashire authority with fewer resources.

John West, leader of the county council, said: "The grant we receive annually from central government now has to be split between the three of us making it almost impossible to work to our intended budget."

Education was the first area to be affected - in a meeting on Tuesday (January 13), councillors decided to slim down spending by £2 million.

Coun Ron Marshall, from the finance sub-committee, is saddened by the situation. He said: "It's a great tragedy for Preston and the council. Many people thought more money would be available when Labour got in but it's just another Tory party under a new name, making the same mistakes."

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