THE way in which local government is funded has been “allowed to get into a bit of a mess”, according to the leader of Lancashire County Council.

But Geoff Driver denies that his own authority is in an impossible situation, in spite of facing a shortfall of £144m by the start of the next decade.   

However, he admits that further reductions in some services are “an inevitability”.

He said: “It’s not the best situation to be in, but we’ve shown in a little over a year how you can make savings.

“I’m a great believer, like most Lancastrians, that you’ve got to cut your suit according to your cloth.”

But the budget at county hall has become increasingly threadbare in recent years, with the authority repeatedly having to use its reserves to balance the books – during the administrations of both political colours.

That means a rainy-day fund which once stood at more than £300m is now forecast to run out in just two years.

Cllr Driver added: “Council officers are looking at how they can provide the same services at a lower cost, without impacting on those services.

“In many, if not most departments, we are amongst the highest-spending councils.

“That might be because it’s really necessary – but I’m sure that’s not going to be the case in every instance."

The man at the top says he would be “a fool” to claim there would be no further cuts to frontline services, but insists his priority is to protect Lancashire’s most needy.

He said: "It’s absolutely vital that we protect services to vulnerable people and make sure that they are viable.”

And he rejects any suggestion that decisions taken to date have hit the vulnerable hardest – while protecting populist policies like the reopening of the county’s previously-closed libraries.

He added: “We have certain priorities – and libraries are one of them. They’re about far more than just going and borrowing a book. In many places, they’re the hub of the community, so other services are provided from there.

“We have to decide what our priorities are and then decide how to sustain them. And the people of Lancashire will decide at the next election whether we got that right or not."