The document, prepared by town hall officers, says the authority should on "no account" agree to any new spending unless it can be financed by budget savings.

Anger as Fylde pool axed

Top councillors have been told the authority is in a worse than anticipated – despite a series of cutbacks.

Councillors will consider the report on Thursday.

It comes after a firm of international auditors gave Fylde a 'red light' warning bosses to tighten-up its budgeting procedures following a £609,000 overspend in its Streetscene waste department.

The authority stumped-up £114,000 for a statutory review, carried out by accountants KPMG, which focuses on the last financial year finishing in April. Council chiefs have previously blamed the Streetscene overspend on the rising price of diesel and the after-effects of a devastating fire at the centre in Thornton shared with Wyre Council.

Baths gone and parking fees go up

Auditors say better monitoring procedures are a priority because they are "fundamental and material" to the internal running of the authority. The 'red light' is the most serious warning the audit firm can give.

Councillors closed St Annes pool in a desperate effort to plug the £1.2m hole in town hall finances.

Fred Moor, from the Fylde Civic Awareness group, has called on the council to ensure it keeps its books in order this year.

He said: "A council the size of Fylde cannot withstand those sort of losses without dramatic cuts to services.

"There was financial incompetence and lack of proper monitoring. To let the loss go unchecked from April to December was absolutely disgraceful."

Anger at tax 'con' plan by town hall

A new budget-monitoring process was agreed in March by council managers.
Coun Paul Rigby, cabinet member for finance and efficiency (pictured above), has admitted improvements need to be made this year.

He said: "A new range of systems and checks have been put into place now.

"The council didn't want to close the baths. The financial thumbscrews are on councils now from central government and the level of council tax rises are capped."

Fylde is now set to sign a £375,000 five-year deal with Preston City Council for the services of Preston's two-person financial management team.

The deal, costing £6,250 per month, will see Bernard Haynes – director of finance at Preston – who took charge of Fylde's accounts before March's budget cutbacks, continue his dual role.