The pressure on Northumberland County Council's finances has eased significantly in recent months, with an expected overspend in its budget almost wiped out.
In September, an email was sent to staff warning the authority was facing a £12 million shortfall in the financial year due to the twin pressures of inflation and the war in Ukraine.
The news left opposition leaders furious and staff were even offered voluntary redundancy - but at this week's meeting of the council's ruling cabinet, the authority's finance chief revealed the situation had improved since the autumn.
Read more: Three taken to hospital following horror three-vehicle crash on A1 in Northumberland
A report presented to the cabinet showed that the net forecast overspend stood at £4.321 million - but finance director Jan Willis felt that figure could still decrease further.
She told members: "The position has improved further since the end of September after the energy support for businesses, which will also benefit the council.
"As things currently stand I think we're looking at an overspend of around £3 million, but we're working on ways to deal with the remaining overspend. By the end of the year I think there's a reasonable degree of confidence that we will be in a balanced position."
The report showed that the council's wage bill is expected to increase by £13.49 million, including the current pay offer of 5% to firefighters. Energy price increases have also cost the council more than £3.5 million.
The council had set aside £5 million in its budget for the year to deal with inflationary pressures.
Following the overspend identified earlier this year, the council took "urgent action" to reduce spending, with any expenditure over £10,000 needing to be authorised by executive directors. Increases in fees and charges were "considered" but in the end were not deemed necessary.
Further savings were found by reviewing the capital programme, with £95.547 million "re-profiled" from 2022-23 to 23-24.
The council's deputy leader, Coun Richard Wearmouth, said there had been "great work from all departments of the council to get this under control".
He added: "This has all gone as well as it could have in the circumstances."
Read next:
