Councillors have said they will ‘leave no stone unturned’ as they look at ways of steering Daventry District Council out of the current economic crisis hitting local authorities nationwide.
At a meeting of the Council’s Strategy Group on Thursday night (Nov 27), members were given a forecast of how the Council’s finances might look over the next 6 years, should the economic downturn continue.
The snapshot of the Council’s revenue budget – the money it earmarks annually to run day-to-day services – showed the Council could be facing a £1,819,000 deficit in 2009/10 due to a range of factors including lower interest rates, a downturn in the housing market and the impact of frozen investments in Iceland.
However the figures are based on today’s fast-moving economic conditions and the scenario could change.
Strategy Group members will set aside a day in December to look at ways of tackling the situation and to plan for a more sustainable service plan that can be delivered within the reduced budget available.
Councillor Chris Millar, Leader of Daventry District Council, said: “We are facing exceptional circumstances and we are not alone – many local authorities are facing the same financial challenges and tough decisions lie ahead for us all.
“As we are a debt-free authority which has built up substantial reserves, with a low Council tax rate, we are in a better position than many others to weather this climate.
“We are faced with extremely serious issues and we are going to study all the options open to us to plan a sustainable budget.”
Cllr Millar added: “The report to Strategy is a snapshot of how the Council’s finances stand today in fast-moving conditions – it is certainly not set in stone and may change again within months.
“The economic climate, interest rates and situation surrounding our Icelandic investments may improve down the line, but we must always take a cautious approach and assume the worst-case scenarios to ensure we are prepared for any challenges that lie ahead.”
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