OPPOSITION councillors have questioned the scale of immediate cuts after it emerged the county council under spent by more than £27million last year.

Final figures showing day-to-day expenditure for Lancashire County Council from April 2010 to the end of March this year show that efficiency savings meant local authority underpsent in all major categories.

Accounts show the council spent £700m aginst its budgetary limit of £727m.

The opposition Labour group at LCC claim elderly residents are suffering disproportionately from cuts in services at the same time as the authority declares a surplus.

But leader of LCC, councillor Geoff Driver countered that Labour ‘don’t understand the most basic principles of finance’.

The county council is making £180million cuts over the next four years. So far more than 1,100 of 24,000 staff have accepted voluntary redundancy.

Labour group leader, councillor Jennifer Mein, said: “I’m sure the residents of Lancashire will want to know why their social care charges have rocketed, why their community centre is facing closure, why their recycling facilities are being shut and local bus services being taken off whilst the Conservative’s underspend by millions?

“If the money is available, why aren’t they protecting our elderly and most vulnerable from the cuts?”

Savings mean adult and community services came in more than £600,000 below budget and spending on children and young people was £350,000 below expected.

The council has earmarked £20m of the savings to finance the redundancy costs of hundreds of workers losing their jobs in coming months The remaining £7m will bolster the county’s bank balance.

Coun Driver said: “Labour have failed to learn lessons from their disastrous handling of county council finances which resulted in the doubling of council tax in the last 12 years of their administration.

“We’ve had to clear up the mess they left us.

“Like everyone else we have to cut our suit according to our cloth.

“We will use the £27million wisely to help ensure that any future budget reductions can be made structured way to minimise the impact on the people of Lancashire.”