A MAJOR consultation exercise is underway as Burnley Council looks to plug a £4 million funding black hole which is envisaged by 2020.

Town hall chiefs said they have already reduced their workforce by 173 recently, and of the 418 posts remaining 183 have been ‘outsourced’ to private or arms-length partners.

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One of the key aims, as the government looks to move to a system whereby authorities which can generate more business rates prosper, is to secure a four-year funding settlement so there will still be a revenue support grant of at least £1.6 million available in four years’ time.

Council bosses are asking residents to get involved and leave their views about what should be done next.

Cllr Wajid Khan, the borough council’s resources executive member, said: “Burnley has not been treated fairly in the financial settlements for local councils which this national government has put in place.

“We will continue to argue loud and clear for fairer funding for councils like ours.

“At the same time, we recognise the reality of the situation we are in.

“We also fully take on board our responsibility to meet the challenges we face, and to make choices in line with the priorities of local people.

“By putting this plan in place, we have a framework for making decisions.

“It also means we have a degree of certainty about core elements of our finances, even though the situation remains very challenging.”

Several moves have been made to offset budget pressures, with the creation of Burnley Leisure to oversee sports and leisure activities within the borough, the renegotiation of the local waste contract, theand appointment of Spanish firm Urbaser, and a slimmed-down senior management team, with 45 per cent of posts axed since 2010.

The authority will continue to lobby for change through its place on the executive of Society of District Council Treasurers but is adamant that they need the public’s views to guide their direction also.

Cllr Gordon Birtwistle, the Liberal Democrat opposition group leader, said: “They have not consulted with any opposition group leader, as far as I know, just like they didn’t consult about spending all this digging up the town centre and creating a leisure trust, with all their debts.”