A DISTRICT council is facing a budget shortfall of almost a quarter of a million pounds at the end of the year, with warnings that the situation is likely to get worse, despite the introduction of unpopular parking charges.
The deficit facing Hambleton District Council was revealed at a Cabinet meeting yesterday with councillors admitting that the shortfall was a concern.
The council must also take into account the warnings from both Labour and the Conservatives, who have stated that cuts to council budgets are inevitable, whoever comes to power after the general election.
The news comes just one day after charges for parking in the district were officially introduced, which are intended to make up a £450,000 shortfall.
Although the parking charges are expected to bring in £350,000 in revenue, a reduction in the amount of rent collected from council properties due to the economic climate and a smaller than predicted return on recycling tonnage, means that the council is expecting a deficit of £244,735 for the end of the financial year.
Arthur Barker, leader of Hambleton District Council, said the council needs to look at the big picture.
"The problem is going to be bigger than the £245,000 if support from the government falls away," he said.
"We’re in a good position because we have already identified areas where we can make savings from efficiencies, such as sharing services with Richmondshire Council or reducing the number of senior officers that we have."
However, Phil Morton, executive director and deputy chief executive of Hambleton District Council, warned that more serious steps might have to be taken.
He said: "Both the Labour party and the conservatives have warned they will make significant cuts to local government funding – some figures have suggested as much as 15 to 20 per cent. If that is the case then to balance the books cuts to services will have to be made."
Mr Barker has pledged not to raise car parking charges during the lifetime of this council as a way of cutting the deficit.
The shortfall will discussed during budgetary meetings this month, with the findings brought back to councillors at the November meeting.
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