SAVINGS and cuts of more than a million pounds will need to be made at a district council over the next year to ensure that the budget can be balanced in the future.

The warning to councillors at Richmondshire District Council comes in a report due to be presented to the Strategy Board at a meeting on Tuesday.

The savings needed refer to the budget for 2011-12, when it is expected that proposed cuts to local government grants will start to take effect.

The main focus of the revenue estimates report is the estimated council budget for the coming financial year of 2010-11.

The total budget has been put at £8,351,050, some £610,000 more than was previously expected.

However, council officers believe that the budget can still be balanced after the council received unexpected windfall grants and efficiency savings worth £338,000.

The report said: "Since the financial strategy was approved by Strategy Board in November, a number of unexpected grants and other income amounts have been received, totalling £363,285. The Council also has a proven track record of making efficiency savings.

"As a short term, one off solution it is proposed that these amounts be used to help balance the budget in 2010/11 and the longer term budget issues identified will be dealt with at a future meeting."

Councillors cannot start to look at council taxes rates for next year until the budget has been signed off.

The medium-term outlook for the council is more bleak as the global recession bites and central government grants are slashed.

The expected shortfall for 2011-12 is expected to be just over £1m, with similar deficits expected for the next two years also.

However, the report notes that if the proposed £1m of savings can be found for 2011-12, this will put the council on a stronger footing and actually leave them with a surplus for the future years.

There is no mention in the report of how the deficit might be covered.

No-one from Richmondshire District Council could be contacted for comment about the report.