THE council's projected overspend for this financial year has been cut back from £20 million to £14m, bosses have said.
East Ayrshire Council (EAC) was looking down the barrel of the mega debt up until March 2025 if spending approaches were left unchecked.
Back in September, the authority's finance chief Joe McLachlan said that management had already "set in motion a series of precautionary measures to ensure that the potential projected overspend does not materialise".
READ MORE: Council warns of £20m overspend unless action is taken to address finances
Mr McLachlan said: "We will have to manage costs and demand so that our costs align to our budget and options around service delivery will have to be reviewed with collaboration, early intervention and prevention, and prioritisation forming part of that change.”
It now looks like that is bearing fruit, as elected members were given the news about the decreased possible overspend this week.
EAC says this improved position demonstrates the significant work undertaken by services to manage the challenging financial position faced by the council and recognises that work is taking place to further improve the position.
At a recent meeting of cabinet, officers outlined the interventions that were put in place at the end of the summer to return the budget to balance.
Members also heard about the additional financial monitoring measures that have been put in place and the recovery plans that are being developed by services to bring budgets back into balance.
Speaking about the reduced figures, Councillor Douglas Reid, leader of EAC, said: “The fiscal challenges facing the public sector have been well documented in recent weeks and East Ayrshire Council is not immune to these.
“It’s very reassuring to learn today that the measures cabinet put in place are being effective in reducing the anticipated overspend which has predominantly been caused by higher costs and increased demand for our services.
"We’ve always been proud of our sound and rigorous financial management arrangements and we will continue to manage these effectively.”
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