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News

Finalising Poole's Budget

The Council’s budget position for April 2002 - March 2003, was discussed by the Cabinet at its meeting on 8 July.

Provisional figures show that the Council has overspent by £1,759,000. Although this has to some extent been offset by savings in other areas, it was more than expected due to unforeseen pressures particularly in Education and Transport. However the major budget issue remains Social Services. The overspend includes:

• £810,000 - Social Services, due to additional costs of looking after children in the Council's care
  
• £494,000 - Education for increased costs of special educational needs and school improvement
  
• £326,000 - Transportation due to increased costs of carriageway and foot-way repairs

After taking into account £1,196,000 of savings and additional income, the Council’s overall net overspend on its budget for 2002/3 will be £563,000 compared to £639,000 forecast in February.

Cllr Brian Leverett, Leader of the Council, said: "We have inherited a difficult situation and the level of budget overspend has worsened since February. This cannot go on. The external Auditor has already expressed concern over the level of overspending and the impact it has on our reserves and this latest news means we will have even less. We urgently need to improve financial management in a number of areas in the Council. We have already asked Managers to identify savings to help avoid the need for possibly more drastic cuts later. In addition stricter financial monitoring is being introduced across all areas and regular reports to Councillors will take place throughout the year to ensure that problems are identified and action taken much earlier."

He added: "Given the low level of funding we receive from the Government it is essential that the budgets set for services are adhered to. The overspending of budgets will undermine our ability to manage pressures in Education and Social Services. Stabilising the Council’s finances is a major challenge and of the highest concern because we must start living within our means and not simply burden Local Taxpayers."

The completed accounts for 2002/3 will be formally submitted to the Council on 16 September and will be open for public inspection from 5 August for four weeks.

Bob Jackson, Head of Financial Services, Borough of Poole, tel: (01202) 633105