URGENT action has been ordered to stop a council's high-technology training centre plunging even deeper into the red.

A shock report revealed that Burnley's Information Technology Centre could be heading for a £190,000 loss this year - £114,000 more than expected. The centre, which links with Burnley College and East Lancashire Training and Enterprise Council (ELTEC) to provide tuition for scores of trainees, has seen costs soar and income plummet.

And a report to councillors warned the situation was "very serious" and an action plan to cut the deficit has been promised.

Burnley Council's economic and property committee heard there were several main areas of concern:

A £36,000 reduction in cash backing from ELTEC and a likely £8,000 rise in training costs.

Incorrect billing accounts to Burnley College and the college's 30 per cent cut in what it pays to the centre has reduced expected income from more than £47,000 to under £19,000.

Challenge funding is down by more than £7,000 and service charges have risen by £10,500.

The report from ITec manager Paul Chapman showed costs had risen because trainees had not found jobs as quickly as anticipated.

He said he had already put a freeze on the budget for equipment replacement, saving the centre £20,000.

He added: "I am clearly aware of the importance of the situation and I will be taking action and presenting recommendations of further action that can be taken to reduce the deficit at the next committee meeting." Economic development officer Hugh Simpson said the report made sad reading and action had to be taken to address the issues urgently.

"Clearly this must not be allowed to slip any further," he added.

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