Bradford Council has underspent by more than £16 million against its budget in the last financial year.

Council leader Ian Greenwood hailed the savings as “sensible, prudent financial management”

in response to the toughest-ever financial circumstances.

The total underspend for 2010/11 is £16.866m. Service savings for the year amount to nearly £12.6m and the figure is added to by £1.6m through vacancy control and £2.6m in contingency savings.

The underspend was planned with the explicit intention of creating a buffer against future budgetary pressures, says a new Council report.

Coun Greenwood said: “The situation we’re in now is going to be the most difficult this Council has faced so it’s extremely important we start a process of saving money as quickly as possible.

“It’s entirely sensible, prudent financial management in response to massively changed circumstances as a result of the Coalition Government’s emergency budget.”

The Council will lose £67m from its budget over the next two financial years. Coun Greenwood said: “I’m confident we can stay on target while protecting the most vulnerable people.”

Councillor Glen Miller, leader of the Conservative group said: “This suggests that either officers are doing a splendid job at targeting the spending reductions, or the Council had too much money in the first place and making the savings was quite easy.”

Councillor Jeanette Sunderland, leader of the Council’s Liberal Democrat group, said: “Looking at the underspend and the overspend, some of it is genuine but much of it is unexpected and windfall.”

  • Read the full story in Tuesday's T&A