A FIVE-strong panel of councillors is being formed in Pendle to handle a raft of expected town hall job-loss decisons.

Around £3.5million must be shaved off the borough council’s budget over the next three years as part of the national spending review.

And town hall bosses admit the moves could have a ‘serious effect’ on the council’s workforce between now and 2014.

Human resources manager Susan Tyer said: “This leaves the management team with little option than to recommend that the council consider a full restructiring of its staffing resources, to assist in endeavouring to maintain and support frontline services.”

Two Tories, two Liberal Democrats and one Labour councillor will form a special committee to consider the staff overhaul.

The council believes it will lose an estimated £9.5million in housing renewal, regional development and capital funding for 2011/12.