Tower Hamlets faces �2m deficit as it prepares its budget
TOWN Hall bosses are thrashing out their budget proposals this-evening in London’s deprived East End in the face of a �2 million deficit looming. Tower Hamlets councillors are being told that budgets in most departments are being badly managed
TOWN Hall bosses are thrashing out their budget proposals this-evening (Wednesday) in London’s deprived East End in the face of a �2 million deficit looming.
Cabinet members at Tower Hamlets have been told that budgets in most council departments are being badly managed.
This means the authority’s General Revenue fund is likely to go into the red by �2,044,000 in its day-to-day accounting by the end of April.
Government subsidies are being cut, so the authority needs to bring in a cool �310m in the coming financial year just to make ends meet.
You may also want to watch:
That would put the average Band D council tax at �885 from April 1 if tonight’s recommendations are agreed, which would still have to go before the full council later.
The cabinet is being asked to establish a “balanced and robust budget” for 2010-11. The economic downturn has slowed the East End’s regeneration, the cabinet is being told. That puts pressure on Town Hall income.
- 1 Poplar MP acquitted of Tower Hamlets housing fraud
- 2 Jury sent home for the day in MP Apsana Begum's trial on housing fraud charges
- 3 Home Office pours £1m into tackling drug-related problems in East End
- 4 East London travel disruption round-up for the week ahead
- 5 Unlocked rooms created 'radiation exposure risk' at hospital, inspectors report
- 6 'Vexatious charges': MP turns on accusers after acquittal in fraud trial
- 7 Apsana Begum's ex-husband may be behind housing bids, trial hears
- 8 Mum plans to use Raine's Foundation site for new East Park church school
- 9 Poplar MP tells court: 'I fled home when brother said I was possessed'
- 10 MP reported ex-husband to police for alleged 'harassment', trial hears
The Chancellor’s pre-Budge report in December confirms “Government funding for public services is poor.” The outlook apart from NHS spending and front line’ schools looks particularly serious.
The current �2m overspend’ will have to come out of next year’s budget, the cabinet is warned. “The overspend is a matter of concern,” council finance experts are telling members. “It reflects that budgets are not being successfully managed in five out of six council directorates.”
The deficit would have been higher, around �3.7m, but some cash has been clawed back’ by last year’s lower-than-expected local government pay award to council workers.
The council’s chief finance officer warned in December that the authority faced going into the red by �8m, with a projected overspend up to �4m in housing budget alone.