MONMOUTHSHIRE council has saved more than £300,000 on services as it nears the end of the financial year.

In a report by the head of finance, Joy Robson and her assistant Peter Davies, cabinet members were told that the council had forecast an overspend of £333,000 three months ago, but now there is a projected underspend of £302,000, meaning that a reduction of £635,000 on the initial estimate has been made.

Councillor Phil Murphy said the council’s finances remain on course and that the situation has improved substantially, attributing the healthy accounts to the underspend of £725,000 in the collection of council tax.

But the council has forecast an overspend in other areas including social and health care (£100,000), community care (£430,000) adult services (£254,000) and children and young people (£309,000) which Cllr Liz Hacket-Pain said is largely as a result of staff redundancies in schools.

Leisure services have been hit by declining fitness suite memberships and a dip in income from schools using the facilities, resulting in an overspend of £184,000.

Cllr Simon Howarth voiced his concern that leisure and library services cannot be cut any more and Kellie Beirne, chief officer for regeneration and culture, said other options to generate income must be explored.

The council has spent £107,000 more on libraries but the council’s leader Cllr Peter Fox reaffirmed the commitment to building a new library in Abergavenny.

Areas in which the council has been able to save cash include regeneration and culture, catering, single status and job evaluation, and infrastructure.