Latest forecasts show Northampton Borough Council £740k in the red for 2019/20
Latest forecasts show that Northampton Borough Council is on track to overspend by more than £700,000 for the current financial year.
The borough council is currently predicting to be in the red by £743,000 at the end of 2019/20. The figures, based on spending up until the end of July, are a slight improvement on the £768,000 overspend that was predicted at the end of May.
The sum includes a shortfall in income from car parking due to new parking charges not being implemented in the town centre until July – which set the council back £113,000 – and an overspend in asset management of £108,000 due to vacant posts being covered by interims and consultants. Demand for temporary accommodation has increased since April, which has resulted in a forecast pressure of £300,000.
There were some areas where the council was underspending too, mostly in the Chief Executive, Borough Secretary and Planning service departments. A sum of £131,000 has been 'saved' due to a number of vacant posts within the departments There is also a projected underspend of £170,000 as the council has had to take out less borrowing than originally forecast due to a ‘strong cash position’.
Chief finance officer Stuart McGregor told a recent meeting of cabinet: “It’s a slight improvement on the last overspend. Whilst we are keen to reduce the overspend, we don’t want to compromise front line services, so any overspend at the end of the year would come from our reserves.”