TOWN hall services are facing cuts of £7 million during the first year of independence for Blackburn with Darwen Council.

Leaders at Blackburn town hall are warning they will have to make savings if they are to balance their budgets in the first year of unitary status.

But finance bosses are claiming things need to be kept in perspective and the cuts will come from a £130 million budget.

The £7 million shortfall will mean savings of more than five per cent in vital services like education and social services.

The final budgets for the coming year will be decided early in the new year and officials have been asked to look at ways of saving money.

Lancashire County Council is also looking for savings following the Government's decision not to abandon capping for local authorities who overspend.

County Hall leaders have warned £35 million will have to be axed from their budget of around £800 million. Extra cash will also have to be found to cover the cost of local government reorganisation.

Gail Barton, finance chairman and deputy leader of the council, claims there is no need for panic.

"As a responsible authority we will be looking at everything we do. We intend to continue to consult fully with local organisations to make sure that their voices are heard," she said.

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