COUNCIL bosses in York have confirmed they face a budget overspill of more than £4 million this year.

City of York Council’s analysis of its finances and performance for the first three months of 2009/10 has shown it is currently forecast to overspend its £117.88 million budget by three per cent.

The main cash pressures outlined in a report to go before the authority’s executive next month include higher-than-expected demand for independent residential and nursing care, additional staff costs in the children’s social care area and a drop in car-parking income.

The council said it was “taking measures” to deal with the potential overspend, but it was improving in 56 per cent of the areas it uses to measure its performance, including Key Stage 2 maths and English results, recycling and landfill rates, visits to the York Explore Centre and bus passenger journeys, while unemployment remains below regional and national averages.

But it said improvements were needed in several areas, including reversing a 44 per cent increase in bike theft.

Kersten England, the authority’s executive, said: “Local authorities across the country are facing huge financial pressures over the coming months and years, and York is no different.

“However, we are committed to ensuring the council provides high-quality, value-for-money services for local residents, visitors and businesses.

“That means ensuring every penny of taxpayers’ money is spent wisely.

“Constantly monitoring and revising our spending levels, together with our More For York initiative to make the council more effective and efficient, will enable the authority to provide high-quality services in the future, despite further anticipated cuts in Government funding.”