FINANCE chiefs laid bare the uncertainty facing councils once their current Government funding deal runs out.

Hyndburn Council portfolio holder for resources Cllr Joyce Plummer said the outcome of the fair funding review was not yet known but could leave councils up and down the country faced with tightening pursestrings even more.

Cllr Plummer said the council had a good track record of putting together a balanced budget but that could be tested in the future.

She said the local authority could be faced with having to save as much as £2 million in 2021/22 in a worst-case scenario.

For the upcoming financial year, the council has to find £116,000 in budget savings.

Cllr Plummer said: “The council faces uncertainty over its future revenue streams and our ability to plan balanced budgets over the next few years.

“We don’t know the path Government is going to take in relation to financial support for local authorities.

“The Government wants to review how local government is funded but the review was put on hold in the run-up to the General Election.

“It’s expected the review will be reactivated and there will be major changes to the way local government is funded from April 2021.

“For now, we can’t predict the outcome of the fair funding review so we have to prepare for the need to save £1m.”

Cllr Plummer said it had been forecast that could rise to almost £2m depending on circumstances.

Proposals for next year include a £5 rise in council tax for band D homes, and the council has to find £116,000 in savings in order to balance the budget.

Cllr Plummer added: “Cabinet proposes to council an increase council tax for 2020/21 of £5 per year for a band D property.

“This is equivalent to less than 10p per week and as most households in Hyndburn are band A rather than band D properties, the vast majority of households will only see a rise of 7p per week.

“This is only the fourth increase in council tax by Hyndburn Council in 11 years.”

The precept set by Lancashire County Council forms the majority of the bill for Hyndburn householders.