Figures published in the council’s finance monitoring report on 7 January show that the forecast year-end position is an overspend of £11m. This is down from the £30m predicted in July.
The figures show an improvement on the £15.6m position reported last month and that the ‘Stabilisation Plan’ drawn up in October has delivered £7.2m in savings, according to the council.
Northamptonshire leader Matt Golby said: “Clearly we are not out of the woods yet and we simply cannot in any way become complacent as there is still a lot of work to be completed. But what is clear is that we are now firmly on the right path.
“In July when we issued the second Section 114 notice we were forecasting a £30m overspend. Since then we have worked tirelessly with our new management team and the commissioners and we have made solid progress to close this gap.
“But we are still short and we must redouble our efforts if we are to further reduce this gap and end the financial year in a balanced position.”
To tackle the remaining £11m overspend, the council’s leadership team are continuing to identify new potential savings.
The figures will be discussed by cabinet next week.
Last week PF reported that Northamptonshire has repaid its loan from Leicestershire County Council.
