JOBS and services are under threat in Lancashire schools as the county's education spending is set to go £5.4 million into the red.

Education chiefs plan to send out warnings to accountants at County Hall and Blackburn with Darwen Council about the rapid rate of spending.

The crisis will mean that the new education authority based at Blackburn town hall will start life with a £1 million deficit.

Last financial year Lancashire's schools overspent by £6 million and the money had to be taken from cash reserves.

Reduced wage increases and other money saving schemes meant stretched services were saved from swingeing cuts last year.

A report to the county council's schools and quality development sub-committee has revealed the extent of the latest problems.

More than 34 primary schools, 24 high schools and one special school say they will finish the year in debt.

The figures also show 31 per cent of primary schools and 43 per cent of secondary schools will end up with budgets below standards set by national Government.

Most of the extra money is being spent on support staff wages with some schools deeper in debt than others.

According to Lancashire County Council officials spending cuts of around three per cent will have to be made at cash-strapped primary schools to balance the books.

Budgets will have to be sliced by 1 per cent in primary schools over the coming year.

And an extra £7.2 million will be needed next year to meet spending plans for Lancashire's schools.

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