A REVOLUTIONARY review of council services in Burnley could see private financiers grabbing a stake in the town's markets, car parks, the flagship Mechanics centre and Padiham town hall.

Sweeping changes could be on the cards for the way the council is run and the assets it owns in the face of a mounting cash crisis.

Town hall managers have warned that the cash-strapped council must find an extra £2.3 million savings over two years to stave off a bleak new millennium and are calling for a speedy review.

Longer term options lined up for scrutiny include compulsory redundancies, home working by staff and the council voluntarily throwing open council work for tender by private firms.

Services could be slashed as the council takes a long, hard look at just what it should be involved in.

There could be a full review of the town's property portfolio, with a sell-off of unnecessary assets.

Council tax may have to be paid earlier and a service charge may be slapped on pensioners receiving concessionary travel passes.

Private Finance Initiatives - deals with finance companies to attract investment in return for council assets - could also be considered, says a report to the policy committee.

Deals similar to the forthcoming Curzon Street shopping development, in which the council gives up its Market Car stack and future car park charging rights in return for a multi-million pound stores and parking project, could come under scrutiny to attract new finance. PFIs are possibilities for the town's other car parks, Burnley Market and Leisure services, says the report. Such a project could be the only way to attract the £6 million needed to refurbish the Thompson Centre, if lottery cash is not forthcoming - but the council could lose control of the major asset as a result.

The review is set to examine the future of the council's loss-making Itec training centre and investigate what to do with Padiham Market.

Many of the options appear unacceptable to the ruling Labour leaders on the council.

But the council has already sold off Burnley and Pendle Bus Company for £2.85 million.

Last week the town hall announced it was investigating the transfer of 5,000 to 7,000 houses to a new Local Housing Company - the only way to attract the £40 million to bring estates up to scratch.

The report, by senior officer Nick Aves, says it is important that managers begin to work soon on long-term options to address the budget problems which arise next year and in 2000/2001.

The report says budget projections are based on the assumption that the Government's spending freeze will remain.

It warns that even if it is lifted, the extra cash pressures would fall directly on council taxpayers unless the Government stepped in with extra grants.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.