Leeds City Council has overspent by £1.1m in its bid to make around £55m of savings this financial year.
The findings point towards areas such as rising energy prices and staffing costs as reasons for the overspend, which is detailed in a report by council officers that sets out council finances up to the eighth month of the financial year.
The council’s city development department, which includes planning, sports and recreation and the management of council assets, spent almost £1.3m more than expected, while some areas of spending came in under budget.
Further savings are hoped to bring down the overspend in problem areas, before the council bids to make another £51m in cuts next year, after the 2013/14 budget finalised in February.
The report, which goes before the council’s executive board today (Jan 9) stated: “It should be noted that the delivery in full of all budgeted savings and income targets does still carry a degree of risk and directorates have been reminded of the need to achieve a balanced budget at the year end.”
It stated that council savings in the city development department are being sought to address the overspend but that a failure to do so could result in “additional budget pressures”.
Spending on environment and neighbourhoods, featuring expensive areas including waste collection, also rose once again to more than £900,000 higher than budgeted.
Income from electricity generation at the Gamblethorpe closed landfill site, in Swillington, added to this, as the site is now expected to yield £95,000 less than originally planned.
The shortfall is down to “gas levels falling more quickly than had been anticipated”.
The council’s chief executive Tom Riordan said, via Twitter, that the update shows the council is “broadly on track” to make the savings.
Next year’s savings plan, announced before Christmas, follows on from the £145m of savings already made by the council over the past two years.
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