Shropshire Council faces budget gap
The cost of office moves and refurbishments at Shropshire Council's headquarters, including a new suite for chief executive Kim Ryley, has gone over budget by more than £400,000, it was revealed today.
The cost of office moves and refurbishments at Shropshire Council's headquarters, including a new suite for chief executive Kim Ryley, has gone over budget by more than £400,000, it was revealed today.
The figure, contained in a report to the authority's audit committee, comes after councillors agreed for all staff at the authority to take a 5.4 per cent pay cut to help save £7 million over the next three years.
Union chiefs vented their anger in December when it was revealed that £85,000 was being spent on new offices for staff at the Shirehall in Shrewsbury, including for Mr Ryley.
Patricia Wilson, branch secretary of Shropshire Unison, said the amount was "despicable" but officials defended the scheme.
Mr Ryley said he had acted to cut the cost of the refurbishments by half as the council was said to be "conscious of the need to be sensitive" in the current financial climate.
However, the new report shows that office moves and refurbishment have resulted in a £421,000 overspend.
The report says: "The increase in overspend is due to the costs of Shirehall redevelopment and removal costs for other office moves around the county in order to rationalise the accommodation held by the council and further reduce costs."
Other big overspends in the past financial year included £1.5 million extra spent dealing with the problems caused by the severe weather last winter.
Council officials say this was due to the demand on its gritting vehicles – with more than double the amount of turnouts required than originally budgeted for.
Councillor Keith Barrow, leader of the council, said the office plan would provide a long-term cost benefit. He added: "The overspend was not just on that site, it was moving people round. The offices will pay for themselves in the long-term."
Mr Barrow said that since his administration had taken over at Shirehall there was now much tighter control of overspending.
He said: "If anyone overspends it's taken out of their next year's budget."
Overall the council's total overspend, taking into account underspends in other areas, was £517,640, which has been described by councillors as a "fantastic achievement".
By Russell Roberts
