LANCASHIRE’S cash-strapped councils have been stripped of millions of pounds because of an ‘arbitary’ estimate about academies.

The government has worked out how many free schools and academies it thinks will be created the next two years - and taken the cash from local authorities.

This is because the new schools will have control of their own budgets, independent of council control.

As a result, Lancashire County Council has lost £4.5million over the next two years, based on the estimate made by the Department for Education.

And Blackburn with Darwen Council, which is independent of County Hall, is losing £455,000 next year alone and faces a similar reduction in 2012/13.

Council bosses are unhappy that the methodology behind the estimates has not been revealed by Whitehall.

Coun Maureen Bateson, Blackburn with Darwen’s children’s service chief, said the money could have secured up to 100 jobs at the council.

She added: “We have lost £455,000 for something that we haven’t even got yet.

“It is frustrating the money has gone to fund a free schools and academies that haven’t opened in the area.

“It is not the money that goes to schools but it is money that is used to develop schools and used to help school with admissions, payroll and HR for example.

“It is the cost of keeping all community centres open. It could have ensured the good road of education systems.

“The money could fund school improvement officers, support to schools, educational psychologists. ”

Currently one free school application for Tauheedul Islam Boys School, Bricknell Street, has progressed to business case and no formal applications have been made by any Blackburn with Darwen schools to become academies.