COUNCIL finance bosses in Burnley have been rapped after it emerged the authority was faced with an underspend of £1.6million for the last financial year.

Town hall accounts had predicted, back in March, when the last estimate was compiled, that the figure would be £156,000.

Opposition critics have called for tough action, and the borough’s Liberal Democrat administration has confirmed the situation was unacceptable.

The council has already been under enormous financial pressure this year with cuts of almost £2million made from the budget, and the loss of around 90 jobs.

Coun Peter Doyle, Conservative group leader, said the performance of the finance department was ‘unacceptable’.

He said: “If this situation arises again, then disciplinary action needs to be taken against those involved.”

Coun Mark Townsend (Labour) told a full council meeting that the situation was ‘unacceptable’ and urged the Lib Dems to get a tighter grip on the borough’s finances.

Councillors needed to be able to rely on the information presented to them during update reports, especially in the current financial climate, he added.

Council leader Coun Charlie Briggs said it was important that such a discrepancy did not arise again, but he did not want to ‘over-react’.

Deputy council leader Coun Margaret Lishman, cabinet member for resources, would be monitoring the future performance of the unit to guard against a repeat, he said.

Official figures show a number of Government grants had not been taken into account, gas and electricity bills were £215,000 less than expected, and a hefty VAT refund was secured.

The council also had a shortfall in income from the leisure and recreation fees and charges, of £110,000, and had received the first instalment (£204,000) of the money owed to the borough from the collapse of Icelandic bank Landsbanki.