FACILITIES in Rossendale will have to be cut after it was revealed council balances are set to drop to just £216,000.

Accusations flew around the council chamber at the corporate policy committee when the deputy leader Councillor David Hancock branded the Conservative budget over the last two years as "not good financial policies."

"We have had two years of bad budgeting which did not take account of all the things we are having to pay for and regrettably we will have to close facilities."

The report details over-spends which will reduce budgets from £621,000 in March 2002 to a projected £216,000 in March 2003. The district auditor recommends balances of £500,000.

Court, tribunal and public inquiry cases will cost £110,000 and an under-estimate on a new computer contract a further £60,000.

Councillor Hancock criticised, "Ridiculously local council tax increases" levied by the Tories.

Councillor Graham Pearson said the Conservatives should have been aware of the costs and warned: "There are problems on the horizon. It is too frightening to anticipate these are not safe balances. It was a most unsound budget."

But Conservative leader Councillor Neil Smith blamed the previous Labour administration for some of the costs, in particular the tribunal, which had only just come to fruition.