Bradford Council is being urged by its auditors to put long-term budget plans into place to tackle the deficit in education and social services.

The services have finished the year with a total deficit of about £1.2 million.

External auditors KPMG also estimate that the district's schools are likely to run into a £1.8 million deficit by the end of this year.

They warn the planned schools reorganisation could strain finance even further - and the Council should review action to deal with the individual deficits

KPMG say it is disappointing that the rent arrears of tenants who move off are rising, particularly in Bradford North and South. They say Council tax collections are the lowest in West Yorkshire, but have improved and are at the same level as comparable cities.

The auditors advise the Council to ensure it has adequate balances to cope with any unforeseen changes in its income or expenditure.

But KPMG say they are happy with the authority and the progress made since the last audit. They say it is doing well as a national Best Value pilot scheme.

Council leader Ian Greenwood said: "I am very happy with the management letter, which gives us an objective endorsement of the way the authority is being managed."

Tory group leader Councillor Margaret said she hoped the Council would act on the auditors' recommendations. "Bradford is in a far from healthy position."

Councillor Jeanette Sunderland, Liberal Democrat leader, said they were concerned about the Council's reserves and the Labour group's lack of control over spending.

Tough choices have to be made at many schools across the district with budget deficits. Buttershaw Upper School will be in the red to the tune of £330,000 by the end of the financial year.

An expensive £60,000 overhaul of the 40-year-old central heating system was one reason, said headteacher John Hull. "Having such a large deficit is demoralising. You look at peeling wallpaper and pitches that need investment to improve drainage.

"I have just ordered some chairs that cost £1,500, but you have to choose between chairs to sit on and books."

At Belle Vue Boys School, headteacher Bruce Berry is coping with a two-year-old deficit of nearly £195,000 caused by a sudden large drop in pupils entering the school.

"We had budgeted for a certain number of pupils and had staff in place and then suddenly we got 80 fewer pupils, which equates to about a £140,000 shortfall."

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