Financial experts have predicted Oldham Council will have overspent on its budget by �1.8m.

They have insisted the cuts must be made before the start of the next financial year in April next year.

The ruling Labour group has blamed the previous Lib Dem administration, after accusing it of signing a �2m contract with private care homes without full council agreement.

It means social services has been told to make �600,000 savings, despite a recent report revealing there are "serious gaps" in the service.

However, the Lib Dems said the need for the cuts had not been caused because of the way it ran the authority.