The Catholic Bishop whose diocese covers Preston has apologised after the Lancaster Diocese spent £10million belonging to local parishes without their permission.

Bishop of Lancaster, Patrick O'Donoghue, said the money was spent by the central administration of the diocese due to a confusion between civil law and the law of the church.

"I share your anger and frustration that monies accumulated in your deposit and current accounts have been borrowed largely to shore up central administration," he stated in a letter read at the area's churches on Sunday. "What is even more frustrating is that it is highly unlikely that the central diocesan administration will ever be able to pay them back in full."

The statement went on: "We should not allow our financial difficulties to dishearten us, to dampen our zeal for the Gospel."

The diocese, which covers from the Ribble to the Scottish border, has been forced to make redundancies, he added, and impose a short-term moratorium on building projects because of its financial situation.

Reverend Canon John Gibson, of St Walburge's RC Church, Weston Street, Preston, declined to comment on the Bishop's letter.