CLAIMS of a £6million ‘black hole’ in Hyndburn Council’s finances have been labelled ‘absurd’.
Labour MP Graham Jones made the claim after his party won control of the council at the local elections earlier this month.
It has emerged that the figure was the result of adding together a string of unconnected amounts, some of which related to Government money, capital projects and future years’ budgets.
The Lancashire Telegraph understands the claim of a ‘black hole’ baffled town hall accountants, as the council’s budgets have all been balanced in recent years.
Mr Jones said housing investment money worth £5.2million had been pledged twice by Tory councillors in the run-up to the local elections.
But the town hall said all announcements had been fully costed.
Asked to provide a further breakdown, Mr Jones said a £68,000 ‘cabinet action fund’ for the year had already been spent, while around £290,000 taken from reserves would need to be replaced next year.
He also claimed the Labour group would need to save another £300,000 if it wanted to freeze council tax next year.
He said he was not claiming the budget was not balanced, and accepted some of the amounts would be the same if Labour had been in charge.
But he insisted: “When you are told there are all these amounts, the first thing you do is add them up. It’s not been left in a good state.”
Tory leader Peter Britcliffe said: “This is a complete nonsense.
"The council finances are robust and healthy.”
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