COUNTY Hall bosses have been accused of storing up financial problems for the future by borrowing money for new projects.

Deputy Labour Group leader Cllr John Fillis said transferring costs from the revenue budget to capital spending would save cash in the short-term and land Lancashire County Council with bigger interest bills in forthcoming years.

His criticisms were echoed by senior Liberal Democrat Cllr David Whipp as the authority’s ruling Cabinet approved £45million across more than 30 services.

But the ruling Tory group approved new spending on roads, re-opening libraries and saving rural bus services with£1million of cash subsidies.

Although it deferred detailed consideration of a residential road repair programme for further consultation,county council Tory leader Cllr Geoff Driver confirmed it would borrow the money for the scheme rather than pay for it out of its revenue budget.

Cllr Fillis said: “By capitalising this spending and borrowing the money to pay for it, you are storing up financial problems for the future.”

Cllr Driver said:”In a challenging financial situation we are taking prudent steps by borrowing money when interest rates are at a long-term low.

“We may do this with other services.”

Pendle Rural’s Cllr Whipp said: “The interest rate bills have to paid at some point.”

The savings proposals approved include cutting both the children’s social care and the learning disability services by £2.7m each, while the fostering and residential services budget is also set to be cut by £800,000.