A FIGHTING fund of £3million has been agreed to stave off the most pressing issues raised by Lancashire County Council's £85.1million cuts programme.

And the Labour-controlled authority pledged to restore £250,000 to protect transport for adults with disabilities to day centres and £50,000 from the flood risk budget.

But the £3million, suggested by Independent and Green councillors as part of a contingency reserve, may provide some breathing space as further talks take place to find alternative operators for subsidised buses, libraries and museums.

The decision came during a marathon budget debate at County Hall as councillors looked to save £94.9million for the coming year alone.

Taxpayers were also told they would be facing a four per cent council tax increase, with two per cent ringfenced for adult social care investment.

Protesters from Ribchester and Chipping, who will see four bus services withdrawn within a week, staged a demonstration outside the meeting.

Earlier county Conservatives had proposed recouping £17million by borrowing to pay for areas like Lancashire's waste private finance initiative and Green Energy Initiative, City Deal and school playing field changes, instead of using revenue spending.

Cllr Geoff Driver, group leader, said Tories wanted to retain all subsidised bus services until September 30, to allow consultations with interested parties, so 50 per cent of aided routes could eventually be saved, as well as preserving the day centre transport contract.

Similarly plans to axe 40 libraries and five museums would be delayed for two years, to allow for more consultations, with the Knott End ferry also saved and flood risk budget cuts also rescinded.

Cllr Driver said: "This will save us from the economics of the madhouse."

Cllr Bill Winlow said his Liberal Democrat group's amendment concentrated on transferring £4.5million from a transitional reserve to ensure subsidised bus services remained after April 1.

"This will mean everyone will be able to get to work, get to school and get to the doctors, especially those living in rural areas," said Cllr Winlow, who also confirmed £1.5million would be found in the same way to safeguard the library service ahead of further talks.

But Cllr David Borrow, deputy leader and finance cabinet member, said the Conservatives were 'running away' from making difficult decisions and wanted to borrow their way out of trouble.

He also revealed the county council had also learned, on the day of the budget, that Lancashire's public health grant had been slashed by £1.7million.

Cllr Borrow and Cllr John Fillis also blasted county Tory MPs after North Yorkshire was offered £14.9million over the next two years in rural aid, with Lancashire receiving nothing.

Labour was also critical of the £1.1million the county had received from Whitehall, which was dwarfed by payments to southern authorities.

Cllr Driver said the Labour-run council had 'not helped itself', particularly with the millions spent on the authority's redundancy programme.

One senior county council officer had retired on his 55th birthday and cost the authority £340,000 almost instantly, Cllr Driver told the meeting, also blasting the £7million paid out to private consultants to suggest adult social care savings of £36million.