Council brings in spending block

A SPENDING freeze has been imposed on Oldham Council staff to reduce a £4 million overspend.

As the authority struggles to bridge a £17 million funding gap in its budget, finance boss Peter Timmins, has imposed the freeze on day-to-day spending.

Although there are some exceptions, requests to spend on anything else will have to be made to departmental directors, then to the newly-formed Expenditure Freeze Panel.

The exceptions include schools, First Choice Homes, staff salaries, travel and recruitment, car loans, members’ expenses, some training, children and adult social services’ placements and support, housing benefits and utility costs, IT, and health and safety work.
Requests will be reviewed each week.

Capital spending has been slashed, to cut a projected overspend of £13 million discovered in October.

The biggest overspends are in transport and public-sector housing, but this has been reduced to £3 million because some schemes have been delayed or reduced.

Part of the pressure comes from the fact that capital receipts for sales of land or buildings did not make as much as expected.

Mr Timmins and the council’s chief executive, Charlie Parker, have been given powers to take immediate action to trim capital spending.