EAST Lancashire council bosses are predicting 'tough times ahead' after the new government announced £6.2billion cuts.

Bosses at Lancashire County Council and the North West Development Agency said that the cutbacks would run into millions of pounds in the region.

Treasury officials said that cuts will be aimed at 'low priority' spending and councils would be able to decide for themselves where to find savings.

No decisions have yet been made.

Civil Service recruitment has also been frozen.

Nationally, local authorities must deliver £1.16 billion of savings.

But the government has removed ring-fences around £1.7 billion of grants to local authorities, which it says will add to the flexibility of councils' cuts.

However, opponents immediately started highlighting details of the announcement which are likely to prove unpopular - including freezing Civil Service recruitment, cutting back on university places and scrapping Child Trust Funds.

The biggest loser is the Business Department headed by Lib Dem Vince Cable, which is losing £836 million from its budget.

There were fears that the NWDA would be axed but its popularity among business leaders and councils appears to have it from becoming a victim of the massive cuts in public spending.

All of East Lancashire's councils are under either Tory or Lib Dem control.

East Lancashire reaction

Steve Broomhead, North West Development Agency chief executive, said he was 'very encouraged' by what he had heard.

He said: "We are told that if you are popular you will survive.

"And we can see from the various letters written we are popular in the North West.

"We are encouraged, but never complacent."

Geoff Driver, the leader of Lancashire County Council, said the cuts had been expected and pledged to protect front-line services.

He said: "We are like any average family. When the times are hard we need to watch what we spend.

"The kids will still have food on their plates but maybe the holiday to the Bahamas is cancelled.

"We have been working hard since we came to power to bring in savings and have already identified £37 million of savings that will not affect services at all.

"That hard work will continue to make sure that vital services we provide are not hit."

Peter Britcliffe, leader of the Tory-run Hyndburn Council, said there were undoubtedly tough times ahead.

But he said: "We have a good financial structure and we will have the flexibility to make priorities and address them accordingly.

"This is a situation we have anticipated and we have already begun to share services with councils like Blackburn with Darwen to make savings."

Mike Blomeley, lead of the Tory-run Pendle Council, said: "This is bound to be a difficult situation for all councils but we can make it work."

Tony Swain, the leader of Rossendale Council, said: "The savings we will make will not impact the services that are most important to the people living in Rossendale.

"These are tough times and every department head has been challenged to identify savings in their own sector."