FINANCE chiefs at county hall are planning to cut more than £12million from budgets and raise council tax by an average of eight and a half per cent.

The figure, highlighted by the county finance committee yesterday, will make up more than 80 per cent of the final council tax figure for people in East Lancashire with district councils making up the remainder of the bill.

Residents in Blackburn and Darwen are not affected as the borough's council is now independent of the county council and sets its own council tax levels.

Victims in the county hall cuts include home care services for old people which face 15 per cent reduction to save £675,000 and possible compulsory redundancies.

More than £800,000 will be saved by handing over control of homes for the elderly in the county to an arms length organisation and charges for people who take advantage of the social services department's care schemes for elderly people not living in homes for the elderly would be increased for the first time since 1993. In education, charges for schools meals and milk will be increased, and more children with learning difficulties will be taught in mainstream rather than special schools.

More than £1 million will be saved from new arrangements which have been put in place to fund college students aged between 16 and 19.

Highways budget cuts will be concentrated on roads maintenance as street lighting in the county is already in a poor state of repair.

No final decisions will be taken until the result of an appeal from councillors to the government for money to ease financial problems has been received.

Liberal Democrats at county hall criticised the cuts and called for savings to be made by slashing councillors perks - such as subsidised meals, car allowances and first class rail travel.

County Councillor Chris Cheetham, the Labour chairman of the finance committee said: "We have attempted to balance the needs of the services and the desire to keep the council tax as low as possible.

"I now await the final decision from the government on our allocation and he teachers' pay award before the final picture is known."

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