Council set for £100,000 shortfall

Oswestry Borough Council is set to miss out on an expected £100,000 income because of the knock-on effect of the downturn in the economy.

The housing market slide has meant a dramatic drop in income from land charges and building control fees.

And the council is now warning it will have to address a projected overspend before the end of the financial year.

The council had hoped that it would be looking at an underspend in its final year before it is taken over by a new unitary authority.

Next week the council's cabinet will be given a run-down of the current financial state of the council by director of finance, Mark Taylor.

Mr Taylor said that while the council was expected to make a 0.7 per cent saving on its revenue budget, the predicted outturn against the general fund had changed significantly.

"This is largely due to factors linked to the current economic issues being experienced nationally, particularly the housing market, which has resulted in projected shortfalls for land charges and building control," Mr Taylor said.

Income from land charges, made to people doing searches for the purchase of a house or land, was expected to be £142,000 this year, but is now predicted to be just £95,000.

Another drop in income is in building control fees, expected to be £242,000 but actually £182,000.

He said another significant impact was the cut in interest rates which had affected the interest on the council's reserves.

But Mr Taylor's report says increased income has come from car parking charges and licensing fees.