Troubled Fylde Council's top officer is to quit within days. Chief executive, Ken Lee, agreed to take early retirement early last week as the cash-strapped council struggles to deal with a £700,000 deficit.

Mr Lee, who joined the authority in 2001, will go at the end of November after his departure was approved by a behind-closed-doors meeting of councillors last Wednesday.

Mr Lee, who was not available for interview, said in a statement: "I have enjoyed my time at Fylde and believe that I have helped contribute to the improvements that have been made Fylde a clean, safe, green and pleasant borough for locals and tourists alike.

"The council is now in a position to demonstrate that it has made significant progress with its services receiving national awards.

"I would like to pay tribute to the team of dedicated staff that work for the council for it is they who are producing the improvements at the coal face. All too often they are undervalued.

"The council's staffing levels are very low compared to other authorities. Yet despite this we are performing exceptionally well. That is down to the hard work and goodwill of the staff."

Mr Lee's departure follows the rejection of a so-called 'equitable taxation' scheme which would have seen many services paid for by a precept charged in individual parish areas. But the controversial scheme, which would have seen taxes go up in Lytham and St Annes, was voted down by councillors.

The council is now searching for savings to avoid overspending or the risk of a council tax rise above the Government's allowed levels.

The council has also had to field its biggest ever planning application, the Lytham Quays development, on which feelings were running high in the borough.

Council leader, Cllr John Coombes, said: "Ken has always provided accurate and valuable advice to members - even when he has known that members sometimes do not wish to hear it.

"He has led the officer side of the council in an exemplary way and clearly the council has come along way under his guidance. I am sure that a new chief executive will be able to build on the foundation that he has laid and carry on his good work."

Deputy chief executive Phil Woodward, will be in charge until the new person is appointed.