BLACKBURN with Darwen Council will axe staff on temporary contracts and reduce services in a bid to save £6.5million.

But despite pressure to find savings, Council Tax looks set to be frozen at £1,480.43 for a Band D property, which is the second lowest in Lancashire after the Ribble Valley.

Councils who support a zero per cent increase will receive money from the Government’s revenue support grant but those who increase Council Tax face being capped.

Over the past two years, the council has made around 1,000 people redundant and saved £33.5million of the £40million target it set following Government funding cuts.

A large portion of the £6.5million it has to find in the next year will come from the loss of some of the 200 staff on short fixed term contracts and the deletion of vacant posts.

Ahead of a special meeting to set the budget next week, town hall bosses said a further 23 positions were at risk.

Further savings will come from reductions in services, including the remodelling of mainstream housing services and a review of leisure and culture provisions.

And senior officers have drawn up a £57million investment package for the coming year.

However, with Government cuts set to continue until at least 2016, officers believe the council will have to find between £11m and £27m in the subsequent two years.

Council leader Kate Hollern said the uncertainty over the scale of future cuts made it difficult to plan for the long-term.

She said: “We have faced swingeing cuts in Blackburn with Darwen and although we are adapting, we don’t know what the future holds and must prepare for the worst to protect the many services the council provides that people rely on.

"What is important to residents will remain important to the council despite the limited flexibility for new spending.

“We will be continuing with schemes which will have a lasting legacy for our communities.

“We would be letting people down if we didn’t find ways to keep our towns growing."

A public consultation found that people’s priorities were improving job prospects and the reducing the cost of living.

Taking those views into consideration, the council has come up with an investment package, which includes building brand new schools, renovating existing schools, supporting job creation initiatives, redeveloping the old Blackburn Market site, improving Darwen Railway Station and road improvements.

The annual Finance Council meeting will take place at Blackburn Town Hall on Monday (5).