ALL "non-essential" services across West Somerset are facing swingeing cuts after accountants uncovered a massive hole in West Somerset Council's budget. Although the precise figure is not yet known, it is likely to be much higher the £170,000 overspend figure touted by former finance chief Rod Latham at an audit committee meeting only last month. Council leader Cllr Keith Ross said yesterday (Thursday) the overspend was below £1 million but still considerably higher than previously thought. "It has recently become clear that there will be a significant revenue overspend with regards to the current budget," he said.. "I am sure there will be speculation about the actual amount but the truth of the matter is that, until further analysis is undertaken, the precise sum will not be known. "However, the projected overspend, while more than our current revenue reserves, is known to be less than £1m and the figure is being reduced as more work is undertaken in this area." He said the council had no choice but to cut "non- essential" spending in order to protect essential services. The Rural Initiative Fund has already been closed to new bids until the end of the year and an even bigger question mark must now hang over the future of Aquasplash - a non-statutory facility run by the council at a cost to taxpayers of £245,000 a year. Cllr Ross said: "We know the overspend is significant and we have no option but to cut revenue spending in other areas in order to protect essential services. "I would like to assure local people that the council takes its duty to essential services seriously and these will not be affected. "We have a policy of transparency and feel the public has a right to know the background against which these decisions will be taken. "Existing projects that have already been dedicated funds or depend on European funding, for example the Minehead Visitor Information and Interpretation Centre, or externally funded projects such as the development of the East Wharf and Esplanade, will not be affected." The council's current corporate plan has also committed the authority to spending £7m on the New Horizons healthplex scheme. An attempt to amend the corporate plan by the then newly-elected Independent-led council, while still giving its full support to New Horizons, was voted down by members of the Conservative opposition earlier this year. The Tories opposed the Independents' bid to give the council more leeway to borrow money should it need to finance future projects without selling assets. However, the amendments would also have offered savings on the existing plan of up to £1m and paved the way for the first above-inflation Council Tax rises for more than eight years - the equivalent of £3 on a Band D property. The council is already operating with some £1.5 million less income than central Government would expect for an authority of its size, largely due to its past decisions not to increase Council Tax above the rate of inflation. The authority has also been trying to balance its books by making staff redundant, while many existing salaries have been "capitalised", meaning they have been offset against the cost of projects rather than listed as a revenue cost to the council. It is a major change in fortunes for the authority, which only five years ago had almost £20m of investments. The news also comes less than a week after Mr Latham, who was the council's deputy chief executive as well as head of finance, took voluntary redundancy and early retirement to "pursue other interests". His role has been shared out among the remaining corporate directors and staff seconded from neighbouring Sedgemoor District Council. Senior officers are now drafting a report on the extent of the financial crisis for next month's full council meeting. Cllr Ross said: "We know that addressing the overspend will impact on non-essential services. "This will be hard for local people and organisations that we support in a number of areas where we have no statutory duty to support them, but hard financial decisions have to be taken." He warned that taking no action could leave the council open to forced intervention, where representatives from central government would take over the running of the authority. Cllr Ross said: "At this time, we ask that local people bear with us and help us through the changes that must be made. "As a small council, which is close to its electorate, it is often easier to say 'yes' to requests that the council has no direct responsibility for. For the time being, we no longer have that luxury. "This is a time when all members of the council need to pull together with the community at large to work constructively for the greater good of the district." He said that in the months since the Independents had taken control of the council, many challenges had already been successfully overcome, including the rescue of the Exmoor Coast and Country tourism brochure. He added: "We have discovered the financial deficit in time to avert a crisis, and to meet it as another challenge that can be overcome, but it can only be overcome at a price. "There will be hard decisions that must be taken, but we will make the decisions based on fact coupled with local knowledge of what is best for our local people and the future of the district. "We have been honest, open and accountable during the last six months, which is why I have decided to be open about the very hard choices that will have to be made in the very near future. "We will not side-step our responsibilities, and we will not sweep less appealing facts under the carpet either. "We credit local people with the ability to understand the depth of the problems we are facing, and why tough decisions will be made. "We hope they will stand firm with all councillors and our hardworking dedicated staff to help us resolve the difficult position we have found ourselves in."
