A DEBT advice service which has helped hundreds of Valley residents could be facing a financial crisis.

Rossendale Council's overview and scrutiny committe has recommended to cut £25,000 from the Citizens Advice Bureau budget.

The CAB currently receives £75,000 every year from the council which goes towards premises costs, utilities and essential staff salaries.

CAB also receives £131,121 from the Big Lottery, £19,000 from the Primary Care Trust, £10,000 from Green Vale Homes £24,000 from Lloyds TSB and £31,000 from the treasury.

In a report, the committee said: “The Committee recommend that the council works more closely with Help Direct, which is funded by Lancashire County Council, to deliver a general welfare benefits and advice service through the One Stop Shop.

“This service will also provide trained money advisers and an outreach service for the public.

“ This will speed up the service and offer a safeguard against bailiff action being instituted.”

But Coun Alyson Barnes, leader of the Rossendale labour party, thinks the council has got its priorities wrong.

She said: “I’m really hoping the decision is not taken to cut the funding by a third but it is looking very likely.

“The council talks about how it wants to help families but it is now looking at reducing the funds for CAB which helps familes week in week out.

“This decision could finish the group because I do not think they will cope with losing that amount of financial support.

“I understand the council’s concern about people not being seen quick enough at CAB but it has failed to see the bigger picture.

“The staff at CAB look at some very complicated problems every day and they do it well.”

Last year more than 1,500 clients were helped by the CAB and it is predicted that more than 2,000 clients will be helped this year.

In the first quarter of 2009/10 the CAB worked with 217 new debt clients, giving advice on debt totalling £782,977.

The committee recommended that the charity works more closely with Lancashire County Council's Help Direct service, if the funding was cut.

A decision is expected to be made at full council next month.