Liberal Democrat councillors have raised concerns over a projected £6 million overspend by Labour run City of York Council.

The revelation comes in the 2012-13 Performance and Finance Monitor Report which will be discussed at next week’s Cabinet Meeting. Figures show that the authority missed £1.4 million in savings targets last year while in this financial year £4.5 million of savings are now in doubt. Budget concerns include City and Environmental Services where £1.3 million of savings are slipping, Communities & Neighbourhoods where £963,000 of savings are under pressure, and Adults, Children and Education Services which is currently running £3.6 million over budget. In total the report highlights a current in-year overspend of £5.93 million.

Councillor Carol Runciman, Liberal Democrat Group Leader on City of York Council, commented:
“We are dealing with a Labour Cabinet that appears to have lost control of the Council’s finances. A £5.9 million overspend is deeply worrying. The savings that Labour promised in their February Budget are not being delivered while over £1 million in savings from last year have not yet been achieved. Their Budget made a number of saving assumptions without evidence or detailed plans and we are now seeing the folly of that approach.

“In this context it is frankly astonishing that the Labour Cabinet are still finding money for their pet projects and the Council Leader’s reckless spending. Next week the Cabinet will approve another £3.6 million for his city centre schemes while in our communities money for basic frontline services like bins, social care or potholes can not be found. Labour really do need to get a grip on things.”