CASH-challenged South Lakeland District Council was put under further pressure this week as one of its departments reported heavier-than-anticipated losses.
SLDC is trying to make £1.2 million savings to balance its books after rising costs and falling income led to a budget shortfall for 2000/01.
This week it announced its Commercial Services Department, formerly known as the Direct Services Department, had returned a loss of £343,300 for 2000/01.
The department, which provides services such as road sweeping and bin collection, blamed the losses on rocketing diesel prices and the shrinking council budget.
SLDC chief executive Philip Cunliffe said the loss could be covered by DSD profits made in previous years and cash from general funds.
The issue will be debated by full council next week.
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