THE leader of Wiltshire Council has said the council will now be on budget at the end of the financial year after forecasting an overspend of £3.8m just last month.

The estimated overspend, which equates to one per cent of the total 2009/10 net revenue budget, was blamed on the adverse economic climate and each council department was asked to outlined what cutbacks it could make.

Since it came into being in April the new council has seen a reduction in income in areas including planning, building control and car parking, which usually generates £5m a year but is only expecting to bring in £3m this year.

The council has so far made more than £450, 000 in savings over the last month and says it is on target to wipe out the previously predicted overspend by the end of the financial year.

Much of the money is being saved through a freeze on recruitment of non-frontline staff and cutting back on consultants and temporary staff.

A report of the final accounts for the five former councils has also shown that the council has been left reserves of £16.4m instead of the projected £15.396m.

Council leader Jane Scott said: “Our finances are in a much better position than previously reported. It is pleasing to see that, due to the hard work and dedication of staff with the council, we are on target to stay within our budget this year.

“We needed to take these measures so those projections didn’t become a reality.

“I would like to reassure the public that we’re not going to cut frontline staff such as social workers.”