HYNDBURN MP Greg Pope today slammed the leadership of the borough's council for allowing it to get into a massive financial crisis.

Hyndburn Borough Council needs to make £1.8 million savings by the end of the year after spending too much money, it was revealed last week.

The cash crisis could result in an overspend equivalent to more than 16 per cent of the council's £11million budget.

It is feared a bigger than normal council tax hike and cuts in services could be on the cards -- and the council could even become bankrupt.

Both political parties have pledged to work together to resolve the cash crisis, which came to light in September, by setting up a joint working group.

The news means cuts in services and possibly a whopping 10 per cent increase in council tax.

Mr Pope today heavily criticised the leadership of the council.

He said that central government funding to the council had been at a rate higher than inflation.

He also said that any previous plans revealed by council leader Peter Britcliffe to increase councillors' expenses should be shelved.

In May this year, Coun Britcliffe increased the size of the council cabinet from seven to nine, and split the scrutiny panel into two, creating an additional £15,000 in members' expenses.

Expenses have jumped from £49,500 to £64,500 with Labour saying every member of the Conservatives had been given a specialist role, attracting extra payment on top of the basic £3,100 allowance. Today Mr Pope said: "I am puzzled as to why there is a financial crisis.

"As far as I am aware the central government funding for Hyndburn Borough Council has in the current year increased significantly above the level of inflation.

"Its only two months ago that the leader of the council was talking about increasing councillors' expenses by 70 per cent.

"I think the leadership of Hyndburn Council have some serious questions to answer as to how this crisis has come about.

"Obviously they need to sort it out and any proposals for a ludicrous increase for councillors' expenses of 70 per cent should be ditched."

Coun Britcliffe said "We will definitely save the council from going bankrupt and take whatever actions are necessary to prevent that and alleviate the situation for council tax payers."

Vacancies at the council could be one area to be hit.

But opposition leader Jean Battle said last week there would be no redundancies.