Council on course to exceed target for savings of £7.5m

Officers are forecasting an underspend of 7.8m, a figure achieved through a freeze on some posts as well as eliminating non-essential expenditure and reducing costs in supplies and services.

This year's underspend comes on top of a service budget underspend of more than 11m last year.

The council is looking to save a further 10m over the next two to three years by using fewer buildings, better procurement of goods and services, and using new technology to improve productivity and service delivery.

A report to next Tuesday's Cabinet meeting says schools have overspent an estimated 1.624m from their budgets, but these are separate to the council.

East Riding Council has not had to ask for voluntary redundancies to date, although 135 posts are at risk – in contrast to Hull where more than 540 workers have signed up to leave the authority at a cost of more than 13m. Council leader Steve Parnaby said: "This is a really excellent achievement and a reflection of the council's track record of strong financial management and providing value for money.

"The council has been taking a planned, measured approach to the new financial climate and the likelihood of having to make total budget reductions of around 30m over the next four years as a result of reductions in Government funding. The Government's funding settlement for local authorities is expected to be announced shortly and, while there is no sense of complacency, this council is better placed than many to face the challenges ahead.

"The projected underspend is all the more commendable when you consider that the council has also had to make additional in-year savings of 2.2m announced in the Government's emergency budget in June."

The news comes as Coun Parnaby and four other members of the Cabinet are appealing a decision to not let them stand in next year's elections.

Hull and East Riding co-ordinator of the Taxpayers Alliance Andrew Allison, said: "East Riding is one of the highest council tax chargers in Yorkshire so this is hardly surprising. It shows they have been overtaxing."