FINANCE experts have predicted £4.3 million will have to be cut from services and council tax bills will rise by 5.5 per cent in Blackburn and Darwen.

Some of the cost-cutting measures could lead to redundancies at the town hall and council departments are also looking at possible increases in charges for services during the next 12 months.

Finance director Alan Cotton has been busy working out the figures following the Government's local government settlement.

Department heads are being warned to take a close look at where savings can be made, even though the latest figures are not as bad as originally predicted.

Early predictions were that council demands would rise by six per cent and the £7 million worth of savings would have to be made.

The increase of 5.5 per cent would see council tax for Band D properties rise by £46 to £880 in Blackburn and Darwen.

The council's budget is set to increase to £140 million when the council takes over control of education and social services.

Mr Cotton has drawn up an early estimate of the final budget for next year but is still warning the picture could change by April.

Talks are taking place with Lancashire County Council over how funds will be shared out when Blackburn with Darwen Council becomes a unitary authority.

The latest figures were unveiled at a finance services committee meeting.

In a report to the committee Mr Cotton said: "Overall, the Government settlement is a favourable one.

"However, Blackburn with Darwen will inherit a large spending gap from the county council in addition to its own shortfall."

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