CASH-strapped Pendle Council is considering cutting highways, social services, tourism, and waste collection spending in a bid to stop it going into the red.

Councillors have vowed to fight for the 'missing millions' owed to them by the government after it was revealed the council faces £1.2million cuts, or a 28 per cent council tax rise, next year which would mean the government stepping in to impose lower bills.

The stark message comes a week after Coun David Whipp blew the whistle on the government 'funding fiddle' which, he claimed, had robbed the borough of £4million.

Members of the council's executive committee accused the government of 'big bully tactics'. Lib Dem Coun Tony Greaves said: "We can do nothing about it because we haven't got the clout. Once again the government is engaging in big bully tactics. Here we have a government which parades itself under the name of the Labour Party which is telling councils to cut services."

The council has called on Pendle MP Gordon Prentice to help its campaign, and has written to the Local Government Association which represents councils.

The row has broken out because the government introduced a new funding system two years ago. Each council should get the same minimum amount, but the government also introduced a 'ceiling' -- a top level of income for councils. In Pendle, this meant £681,000 of the council's grant was withheld this year and staff estimate more than £2million could be kept back over the next two years.

Councillors now have to work out how they are going to balance their books next year. They have agreed to look at four high-cost services: highways, waste collection, tourism, and social services, consider increasing charges, and review borrowing, and how much is spent on buildings.