COUNCIL tax could go up by 2.5 per cent in Pendle next year as the council looks to make more savings.

Councillors are already talking about how to save at least £1.75million in the 2012/13 financial year.

Savings made this year included closing Barrowford Civic Hall, stopping a grant for the Burnley and Pendle Multi-Racial Playbus and making 23 employees redundant.

A report has been put together looking at various options on saving money for next year and will be looked at by councillors at an executive meeting tomorrow.

As well as considering a hike in council tax the council are also looking at options including selling assets, reviewing employee terms and conditions and cutting low-priority non-frontline services.

Councillor Linda Crossley, who oversees the Council’s resources, said: “Funding for local government is reducing and presents us with a significant challenge.

“That’s why we’re starting early to deal with the problem. We know that we’re receiving £1.638m, or 14 per cent, less funding in 2012/13 when compared to the current year.

“So we need to make some decisions on how to make sure our budget remains in balance.”

The report proposes using £5m in reserves up to 2015, but saving still need to be made every year until 2014/15.

Stephen Barnes, council chief executive, said: “The scale of change in government grant funding, combined with low council tax increases, will have a significant impact on the affordability of the services we currently provide.

“We’ll have to make some difficult decisions but we must identify ways in which we can balance our books while protecting key services for our residents.”