Massive money problems in social services and education threaten to break the bank, a grim forecast made just two months into the financial year.

Officers have been ordered to draw up action plans to find savings across a whole range of services.

Bury's MPs are being asked to lobby the Government for help with senior councillors blaming much of the crisis on having to pay for a series of changes in legislation.

Cllr Derek Boden, deputy council leader, said the £3 million deficit forecast for next year was a "worst case scenario".

But he admitted the situation was serious, and there was not enough in council reserves to balance the budget.

Social services is heading towards a £2.5 million overspend if current trends continue, whereby demand for services outstrips resources.

Extra home care costs along with more placements into nursing and residential homes account for £1.1 million of that.

A further £800,000 could be lost if the "Pay As You Eat" scheme in old folks' homes is scrapped.

The council has been taking advantage of this legal loophole for years, receiving housing benefit for residents in council-run residential homes.

And meeting the Government's new "Leaving Care" legislation will cost £200,000.

Money has only just been found to meet last year's social services overspend of £380,000, with a further £450,000 of efficiency savings also budgeted for.

In education, the £500,000 pressures come from overspending on placing children in independent schools outside the borough, and paying more on transport and bus escorts.