The council leader came in for flak at a public meeting as he explained the decision to scrap area councils.
Last month’s decision to cut nine area councils across Hyndburn was met with outrage by residents at the first meeting of Oswaldtwistle’s new area forum. The forum was meeting for the first time since the area councils were scrapped as a cost saving measure.
Labour council leader Miles Parkinson was faced with furious residents at the meeting, some of whom complained that the decision had only been taken after the local elections.
There were also calls for the budget allocated to the area council at the start of the year to be reallocated to Oswaldtwistle.
Coun Parkinson told the meeting the money had not disappeared, but officers were re-examining budgets.
He said: “Our budget has shrank dramatically. The area councils have done some good work, but my main priority is to shrink revenue even further.
“Each party will have different views on this issue, but we no longer have the funding to keep it going. We have to streamline administration and the services have to be protected.
“I still expect difficult times over the next three years.”
Hyndburn Conservative leader Peter Britcliffe, whose administration introduced area councils in the borough 15 years ago, told the meeting area councils had achieved great things.
He said: “We have done very good work with the funding we have had over the years, and I’ve been thinking of things that wouldn’t have got done without the area council.
“The West End play park, which young David Reid worked so hard for, we were able to get some national grants and work starts there in September.
“We want to have a say on how money is spent in the second biggest town in Hyndburn.”