FEARS have been raised that a delay in the findings of a government inspection of Hyndburn Council could be linked to its £1.8million financial crisis.

The Audit Commission has finalised its examinations of Burnley, Pendle and Rossendale councils as part of its first full inspection of district authorities.

But Hyndburn and the Ribble Valley's results have been delayed.

The news came as council leader Peter Britcliffe announced the sale of the former Brook Bond Oxo mill, at Premier Mill, Great Harwood, which it owns in partnership with Barnfield Construction. The sale could raise £700,000 which, following other cost-cutting measures, would leave a budget deficit at £209,000.

A spokesman for the Commission said it was not unusual for some audits to take longer than others and that the results for both councils were "imminent".

He added: "It's just the way it works and there are all kinds of reasons why some take longer than others. We cannot delay the announcement of those that have been completed just because some have not."

At a meeting of Hyndburn's full council Coun Tim O'Kane asked Coun Britcliffe why the report had been delayed. Today he questioned whether the delay and the Audit Commission's findings were linked.

He said: "It could be that the assessors are unwilling to pass judgement on an unaudited position. Until we have got this external auditor's report the examiners are probably holding back on the rating they give.

"I'm concerned that a report is not forthcoming at the same time that an external auditor's report is delayed. It may well be that the two are linked."

Coun Britcliffe said the decision to delay was taken jointly between the council and the Audit Commission, which inspected the council from September 29 to October 3.

"We've agreed with the Audit Commission that publication of our CPA assessment result can be delayed in order that we can all be assured the judgement reached is the correct one, in light of our current financial position and the recovery plan under way. The council is a strong and well-managed council that is making substantial improvements in service delivery and community leadership supported by both political parties."

The assessment looks at all areas of a council's performance and rates them as either excellent, good, fair, weak or poor.

Rossendale Council remains one of the worst in the country and was judged to be a "poor" performer.

After a separate corporate inspection in 2002 the council was judged to be the worst in the country.

Today an Audit Commission spokesman said: "Overall, the council's weaknesses significantly outweighed its strengths."

Rossendale chief executive Owen Williams said: "I knew it would be a challenge when I came here back in May but we are slowly improving. Despite us still getting a poor performance, we are making improvements and making changes all the time."

Burnley and Pendle were both judged to be "good" councils.

Blackburn with Darwen and Lancashire County Council were also inspected along with 150 other unitary and county councils.

Blackburn with Darwen was judged to be an "excellent" council while Lancashire was said to be "good".