A PROBE has been launched into how Hyndburn Council overspent nearly half-a-million pounds.
Finance bosses at the cash-strapped authority ordered the investigation after councillors voted to borrow £486,000 to cover an unbudgeted commitment to fund private sector housing.
And Councillor David Myles, deputy leader of the Labour opposition, launched a stinging attack on the Tory-led administration.
Speaking after last week's council meeting, he revealed the Labour group had asked for further investigations into the management of budgets for cleansing, leisure and housing deparments.
He said: "The loan shows the ruling group hasn't got to grips with the council's finances. We agreed with the vote because the money will be spent on adapting disabled people's homes. But the finances are not getting better and the council is spending like mad.
"We could be heading for a disastrous situation because the savings of 15 per cent haven't been made and we're not even six months into the year."
Council leader Peter Britcliffe said promises had been made to the borough's disabled that should not be broken.
He said: "We always regret an overspend but if there has to be one we couldn't have chosen a better area. We couldn't have left disabled people needing important work on their homes. If the previous Labour council had faced up to its duties we wouldn't be in this situation."
Joe McIntyre, chief finance officer, said the loan - which costs £26,000 a year in interest - was a "drop in the ocean".
He said: "We borrow a huge amount all the time and probably have about £60M outstanding. We set ourselves a target to borrow as little as possible at the start of the year but because of the demand we had to think again and borrow a little more."
Mr McIntyre was responsible for ordering the investigation. A report to the council stated: "A detailed report will be submitted to the Cabinet and to the appropriate overview and scrutiny committee outlining recommendations for improvement in the management, delivery and monitoring of this programme and the capital programme generally."
