PRIMARY Care Trusts in East Lancashire are underspending their budgets by almost £33million.

East Lancashire PCT, which covers Burnley, Hyndburn, Pendle, Rossen-dale, and the Ribble Valley, is projected to have a massive £28million left over at the end of the financial year, while predictions for the smaller Blackburn with Darwen PCT show a surplus of £4,886,000.

Both trusts, which administrate community health including GPs, dentists and health visitors, had planned for small surpluses, to save for major projects, and pay any unexpected costs. But lower drugs costs, vacancies in administration staff, and other savings, have meant more cash than expected has been saved. As a result, the trusts are now hoping to start service improvements early.

East Lancashire PCT must make sure at least £11.5million of the cash is spent, because any PCT with a surplus of more than £16.5million will have the excess seized back by the North West Strategic Health Authority (SHA).

The trust is now waiting for an answer from the SHA over whether it will release the millions needed for the planned new health centres in Rossendale and Colne.

But bosses said if the North West authority refused the cash, they could fund both from their reserves.

And if the SHA does come up with the money, the extra PCT funds will go towards other projects, like the massive programme to remove health inequalities - improving the lives and health of people in deprived areas.

Finance director Chris Dixon said: "We are seeing unprecedented surpluses in the NHS this year, and we don't want to squander this.

"We want to use it wisely.Members may be concerned about the underspend, but it is not out of step with other PCTs around the country."

But non-executive directors of both PCTs questioned whether more could be done to use the extra money.

Ibrahim Master, of the Blackburn with Darwen board, said: "For a PCT which has health inequalities as great as we have, there really shouldn't be a problem in using the money, but we are finding that the gap is increasing every month and I'm really disappointed about that."

John Wilkinson, of the East Lancashire board, said: "It would be helpful to look at financial planning methods and ensure they are appropriate."