Tight financial management delivers underspend in council budget

Reductions in Government funding mean Harrow must save £62m over the next four years - a third of its total budget. Over half of the savings have been identified, including £19m in 2011-12. 

Subject to Cabinet approval on 22nd June, part of the underspend (£0.7m) will be used to top up the Council's reserves to £7m and provide a solid financial base to respond to future problems.

The remaining £440,000 would establish a new fund, open to bids from council departments, for invest-to-save initiatives or transformation projects that improve the way the Council delivers services and save money. 

The Council also reduced the deficit in the Housing Revenue Account from £1.5m to £1m and will be recommended to carry the saving forward for external decoration of social housing in the current financial year. 

Cllr Bill Stephenson, Leader of Harrow Council, said: 

"We have taken a tight grip on council finances to protect front line services, continue to support those most in need and contend with some of the most severe and rapid Government cuts ever seen. 

"To deliver an underspend on our accounts for 2010-11 is a significant achievement and I pay tribute to Council officers for their determination to spend every penny wisely and save money. 

"The future is very difficult so this saving will be used responsibly. It is not a windfall to spend but instead a hard-earned fighting fund to invest and help us achieve £62m of savings over the next four years. 

"We have made great strides, finding over half of the necessary savings, but there is more hard work ahead. 

"Topping up our reserves is a necessary and common sense step that gives us a solid financial base to respond to increased demand for services and any further Governemnt imposed cuts. 

"The remaining money will create a new fund to research and develop schemes that transform the way we work and deliver better services at less cost. This will include working with our residents to identify how we can make changes that meet their needs.

"This tough financial regime is essential as we transform the Council, bring it much closer to the communities we serve, and deliver excellent services that residents want."