A £1 MILLION cash shortage threatens to create longer waiting lists and cuts in services at hospitals and clinics across East Lancashire.

Worried health chiefs are considering whether the money to maintain services at their current levels during the next financial year might be found by cutting investment or slashing spending on treatment.

Areas where development could be shelved include mental health, cancer services and emergency admissions.

And the crisis will almost certainly mean the end of East Lancashire's proud status as an area where maximum waiting lists for in-patient treatment are six months shorter than the Government demands.

The shock news is contained in a report to East Lancashire Health Authority which will meet on Wednesday to discuss the problems.

Chief Executive David Peat said discussions had taken place with the three health trusts within East Lancashire about the potential financial gap. He said Blackburn, Hyndburn and Ribble Valley NHS Trust, CommuniCare NHS Trust and Burnley would be required to make further budget cuts of more than one per cent. Mr Peat is urging them to work together for a solution.

He says: "Together, by pooling resources and planning service change and actions, the effect of the current situation can be mitigated."

Mr Peat said the difficulties had been sparked by increased pressure on resources and a change in funding formula.

Further financial demands include wage bills, meeting continued demand for services, keeping up with inflation and the danger of another sky-high winter health bill like those experienced for the last two years.

The shortfall is made up of a £740,000 shortage at Blackburn, Hyndburn and Ribble Valley NHS Trust, a £245,000 gap at the CommuniCare Trust and £488,000 at Burnley NHS Trust.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.