SERVICES could be slashed by £2.5 million over the next five years because of a growing financial crisis created by Government spending restrictions, a council chief has warned.

And Burnley councillors have been told that the figure could escalate by a further £2.5 million if a seven-point plan to save cash by altering the way the council operates is not implemented.

The bleak future was outlined to members of the policy and resources committee by Chief Executive Roger Ellis, who said the council was looking at ways to avoid cutting services at all cost.

The management team proposals, which could save a maximum of £2.5 million, include: approaching other councils to jointly deliver services; spending more on information technology; forming charitable trusts to run leisure services; increasing income above inflation; streamlining the committee system.

Mr Ellis said the council has had its spending allowance capped by government for seven years and, as a result, has had to make savings year on year. But councillors were told even if the cap is lifted it is expected there will still be Government restrictions imposed. Mr Ellis said: "We have had to work damned hard just to stand still, but this year we are not even standing still. The mainstream resources have dropped and the capital programme is decreasing. Priority should be given to saving by doing things differently not by cutting services, that should be the last thing after everything else has failed."

Coun Les Harrison said the council kept publicising how much money had been secured through City Challenge, Single Regeneration Budgets and European grants, but in fact they had only received the same amount of money they previously were allowed to spend so, in effect, they had 'won' their own money.

Staffing levels at Burnley Council have dropped by 25 per cent since capping was introduced, although some of the workers are now employed by private businesses which won council contracts like UK Waste.

Mr Ellis also said that, of the remaining council workers, 17.2 per cent of sickness last year was stress-related.

The seven point plan is now being worked up into a full proposal which will go before the council later in the summer.

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