PEOPLE would rather pay more council tax than see huge cuts in services, according to the results of a public consultation exercise by Burnley Borough Council.

The council turned to residents to ask them how they could plug a £2m gap in their budget.

They asked whether sweeping cuts to services and no rise in council tax or a moderate rise in tax and fewer cuts would be preferred.

Two-thirds of people said they would rather see service levels maintained, even if it meant paying more in council tax. The council printed 2,000 booklets at a cost of £1,000 asking people what services they wanted to keep and which to cut.

Council bosses have revealed a massive projected overspend with savings of £1million needed for next year and a further £1million by April 2005.

The leaflets were circulated to public buildings throughout the borough such as town halls, libraries and housing offices,.

Under the council's current saving plans, arts and leisure service and parks look set to be hardest hit with the arts and leisure department being told to find £146,884 and parks £174,187.

The Mechanics Theatre is one of those services which could face the axe.

In addition, support and member services has been told to slash £118,039 while the information services department has been told to find £108,633.

All department heads at the council have been told to report back on how they can make savings by the end of the year.

Last month the Lancashire Evening Telegraph revealed that voluntary groups were also fearing the worst after the borough council announced it was to withdraw funding.

Council bosses have outlined five areas - a stronger economy, a cleaner, safer and greener environment, better housing and healthier communities, leadership and a better organisation delivering a high performing service - where they want to target spending.

The leaflets were the first in a series of consultation exercises which will continue into the New Year, asking people for their views.

Director of finances Nick Aves said: "The consultation showed us that a third of people only wanted to see a rise of five per cent, which would mean major cuts to services and two-thirds said an eight per cent would be acceptable, which would mean fewer cuts.

"It seems that people value the services we provide and, although there is bound to be an impact on services in the coming year, hopefully we can deliver a reasonable budget, making sure that we target resources in the five areas we have identified as strategic objectives."