Council tackles £2m debt

A Lancashire council is taking drastic measures to pay off part of its £2m debt and solve its financial crisis.

Hyndburn Borough Council is selling-off its shares in a public-private partnership with local construction firm Barnfield.

The Barnfield Partnership was set up in 1993 to boost business in the town, create jobs and new facilities.

But the council hopes that by ending the partnership, enough funds will be raised to balance the books by March.

'Balance budget'

The council has already reduced its debt to around £750,000, by putting a freeze on recruitment and restricting the use of first class stamps.

Nigel Rix, director of regeneration agency Hyndburn First, said it had a duty to residents in the borough.

"The council is obliged to balance its budget, which is absolutely right," he said.

"After 10 years in a business activity we are using the financial fruits of that activity to ensure the people of Hyndburn do not see a [reduction] in services."