JOB losses to cut £1million from Burnley Borough Council's spending plans will keep council tax rises under five per cent, civic chiefs have revealed.

But while financial bosses try to make savings, Government plans to make the council responsible for licensing are likely to cost it more money - although it will also create extra jobs.

Today, director of resources Nick Aves confirmed Burnley Borough Council would keep its council tax rise below five per cent.

Staff have had to make £1million of savings to get the increase down to 4.75 per cent, including getting rid of its payroll department and shedding 'a handful' of jobs. Most job cuts will be already vacant posts and anyone affected will be offered alternative employment within the council.

However, final calculations will not be made for another week when the Government announces how much cash it will be handing out. And councillors have yet to decide what they want to spend money on and where they are going to make savings.

Mr Aves said: "The Government really wants the rise to be less than five per cent and we have been thinking about how we can bring that sort of result in.

"We are looking at different ways of doing things, managing with fewer staff and buying goods such as stationery online.

"We are in the process of finalising a deal with Lancashire County Council where they would carry out our payroll function for us and we are transferring one member of staff to them. Overall we think that will achieve £30,000 of savings."

Mr Aves insisted the extra 4.75 per cent would be spent on giving people better services.

He cited Burnley's new one-stop-shop information centre in Parker Lane, which is now £500,000 over budget. The council plans to use money from its savings to fund the initial running costs to make up for the overspend, he said. And the authority is extending use of the 'smart card' payment system for council tax so people can pay at their corner shop instead of sending a cheque or going to a council office.

Council staff are holding two consultation sessions for people to ask questions about the council tax and any other subjects such as recycling, the one-stop-shop and the new health and leisure centre. They will be in Padiham on Saturday and in Burnley Market Hall on January 29.