TOWN hall chiefs are keeping a close eye on Bury Council's coffers as funding cuts bite.

Three reports unveiled at the June 20 town hall Cabinet meeting gave an insight into the local authority's efforts to balance the books in the wake of a sharp funding cut from Westminster.

One report examines how the council has invested its cash over the last 12 months.

It states that, as of March, the council had £22.6 million invested and was getting an interest rate of 0.71 per cent, compared with 0.62 per cent in the previous year.

All of the investments are in high-street banks and the overall amount earned was £323,000.

In the same time, the council reduced the amount it has borrowed from £201.3 million to £196 million and has negotiated lower interest rates.

The amount owed is typical of other local authorities and the council's high credit rating ensures that it will be allowed to repay those loans over a long-term period.

The second report considered at the meeting shows the council's capital budget — money spent on construction and one-off projects across the borough — broke even in the 12 months up to the end of March.

A total of £33.39 million was spent in that period.

"Members can take comfort from the fact that the programme was on target," Cllr Jane Lewis, the council's finance representative, said at the meeting.

The third report shows that the council's housing budget was also on target in the 12 months up to the end of March and saved £61,000, despite £15.8 million of savings being found.

"This was a result of great deal of work from portfolio holders, management and staff over the last 12 months," said Cllr Lewis.

However, she warned there were some areas of concern, particularly the cost of agency staff within the council's adult and children's service departments.

Cllr Lewis added: "Overall, the council's continued financial position was underpinned by a strong performance of the treasury management function.

"Members will be aware that we face an extremely difficult financial position over the coming years, with pressures due to increasing demands on services exacerbated by the very severe cuts in spending per head.

"While balances are robust, I cannot stress enough the importance of maintain them at their current level, given the financial challenges that lay ahead in 2017/18 and beyond."