AFFORDABLE housing projects, regeneration schemes and facilities for young people all look likely to join the New Horizons leisure centre as casualties of West Somerset Council's desperate financial situation. Councillors were told the authority's entire capital programme was in doubt after an accountant from Sedgemoor uncovered gaping holes in the authority's books - just ten days after being drafted in to help. Allison Griffin, who stepped in to fulfil the statutory duties which were previously overseen by departed finance chief Rod Latham, said the council would have to find savings in excess of £930,000 as the revenue account had been bled dry and the authority was overspent to the tune of £878,000. She told councillors they had no choice but to sell assets like Vulcan Road - but would be unable to spend the money on other projects as every penny was needed to generate interest to bail out the revenue account. By law, the council is not allowed to use capital receipts for its revenue budget, which in turn is used to pay staff and fund the council's day-to-day services. She said the revenue account was on course to be overdrawn by £411,000 by the end of March 2008 and that the entire capital programme was underfunded to the tune of £6.5 million. She said: "Historically, West Somerset has had the benefit of investments, which have generated income to the revenue account to support the budget. "These investments have now been exhausted. "In the short term, unless a significant reduction can be made to the revenue budget in the same way, there is the requirement to reinstate the level of investments to an amount that can generate significant revenue investment income. "This will both help address the short-term revenue funding gap and buy some time to allow the revenue budget to be realigned and reduced." She reminded councillors that the authority had only ever approved spending £7 million on the New Horizons project, even though the true figure was over £11 million as council-owned land would be sold for housing to bolster the council's contribution to the scheme. And she warned there could be worse to come: "I don't claim to have bottomed out your financial position at this time, but it is clear enough for me to say I don't feel you can go ahead with this project [New Horizons]." Deputy leader Cllr Simon Stokes said it had taken the new Independent-led ruling group "six months to do what wasn't done in six years". He said: "I believe New Horizons as a scheme is a fantastic opportunity for the people of West Somerset and if it can be responsibly delivered it should be. "If we are told something is not affordable, we would be irresponsible to proceed with it. "Hopefully we can stay onboard to deliver the aspirations of New Horizons, clearly it won't be as it was envisaged. "It's a terrible position to be in, it's not just New Horizons, but the whole capital programme, housing, everything." He said if the council could find money to support the project it would, and said positive meetings had already been held with the scheme's other partners. But Conservative Cllr Dave Westcott said all he had heard was negative comments from members of the ruling group. He said: "The deficit today is £930,000. If we sold Vulcan Road for £9 million, I don't see the problem. "Please let's be positive. I think we can get the money. You're all being negative, saying we can't afford it." Former leader Cllr Christine Lawrence said it would be "terrible" if Vulcan Road was sold and money not put towards New Horizons. But councillors were again told by Mrs Griffin: "We can't use capital receipts to close the gap on the revenue account, we can only use interest." Cllr Mike Gammon said the public deserved a full breakdown of where the council's money had gone, especially as it had banked £23 million from the sale of its council houses to Magna over ten years ago. Cllr Peter Humber said: "The new council and new councillors must have begun their term in office believing the funding was in place and secure, but there has been a gradual realisation it was anything but. "If the Conservatives had been returned with a majority, would you have admitted it? It's a catastrophe for West Somerset. "I suspect we deluded ourselves because we were so excited and stimulated by this part of the corporate plan. "I wouldn't expect the Conservatives to be contrite or remorseful, but I would expect public acceptance of their responsibility for what is now unfolding." Cllr Stokes added: "Cllr Lawrence followed what the officers told her, that has been the problem with this council, they never asked questions. "Cllr Keith Ross came in [as the new leader] and in four weeks realised something was seriously wrong. "He asked questions and when there were no answers he called in the IDeA because we are a more responsible bunch of people. "We now know we are where we are because the people whose job it was to ask questions didn't." But Conservative Cllr Tim Taylor said it was time to "put to bed" comments about the previous administration and appealed for councillors to "move on". He said: "Some of us have tried, and tried very hard, to work with the Independent coalition, but it is extremely difficult to hear comments that are very aggressive. "I take exception to that. It goes against the grain when so many negative comments are flying around when we are trying to be positive." Council leader Cllr Keith Ross said he was "far from negative" and added: "We have got negative balances. This half a million tonne tanker has been drifting without a rudder for years."