LANCASHIRE Constabulary should underspend by £1.1 million this year, police authority members will be told this week.

But the resources committee will also receive a warning that the force could incur unexpected costs from compensation claims made as a result of the Burnley riots.

However the Press and the public will be excluded from the part of the meeting, on Wednesday from 10am at County Hall, when members discuss implications of the Riot Damages Act 1886.

The budget for the year 2003-4 will also be discussed.

Estimates are currently suggesting that the constabulary will require £216.096 million -- a £14 million rise.

Extra costs are mainly attributed to wage rises, inflation, increased pensions and greater National Insurance contributions.

Confirmation is still awaited from the government on what the funding level will be, but Chief Constable Paul Stephenson is considering options to reduce the budget and will make an announcement in the New Year.

A more comprehensive report on the budget for next year will be presented at another meeting in January.