FEARS that another council cash crisis could be on the horizon have been played down by leader Peter Britcliffe.

Opposition Labour councillors claimed Hyndburn was being run "like Toytown" after a report by finance chief Joe McIntyre warned the authority faced a potential overspend of nearly £421,000 unless urgent action was taken.

The report, which was presented to the last meeting of Cabinet, said that the council had already spent more than £24,000 over its budget by the end of July.

But Councillor Britcliffe said: "I am quietly confident the budget is under control and I would say to people that they should beware would-be prophets of doom."

Countering claims that the council was heading towards a repeat of last year's £1.8M crisis, he told the meeting: "What the figures do not show is all the savings we have made, for example by keeping various positions open.

"Also, the figures are just projected spending pressures.

"We realise we will need to be careful about what we spend, but this does not mean we do not take the figures seriously.

"I am sure that many other local authorities would look enviously at the situation that Hyndburn is in."

Labour leader Councillor Jean Battle said: "I am concerned because it looks as though there will be an overspend. It may only be small at the moment, but we need to keep it under control. The projections are a wake-up call.

"What concerns me is that the council is looking to make cuts to front-line services, when it should be looking to make them elsewhere."

Councillor John Griffiths, portfolio holder for corporate governance, said: "We need all service managers to stop spending money, apart from where it is absolutely necessary.

"I would advise managers not to spend money unless it has been accounted for in the budget, and only then if really necessary."