AUDITORS have praised Hyndburn Council for keeping a tight hand on the public purse strings.

They said the council achieved essential savings of £800,000 in a "professional manner" through restructuring and job losses.

The management and financial status of the authority is examined each year by external auditors and was carried out by Robson Rhodes for the second time.

They inspected and approved the authority's accounts for 1996/97 and looked at the resources available for 1998/99.

The auditors recognised that the council faces difficult budget decisions for the coming financial year with the capping level kept at £9.5 million, but the spending cuts will balance the budget.

The council's success in winning external funding, leading to schemes like the renovation of the Globe works, was also noted, along with the high priority given to economic development.

Council leader George Slynn said: "The council welcomes the auditors' comments in particular their praise of the authority's approach to the Corporate Review.

"1997/98 was a difficult period for the authority, which saw a fundamental restructuring of the council and reduction in its staffing level of 31 posts as a result of the year-upon-year funding cuts by the previous government.

"The auditors commendation of the way this process was carried out and their view that the authority continues to seek economy, efficiency and effectiveness is news all members of the public, staff and councillors will welcome."

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