Mid Devon: 'Unexpected pay rises' create £500K overspend

A review of recruitment and the use of agency staff has started at Mid Devon District Council

A council said higher than expected pay rises meant it faced a £500,000 overspend on its main budget.

Mid Devon District Council said a 6.5% rise for full time equivalent staff and the use of more agency staff was putting pressure on budgets.

A report to the council's Cabinet said reserves were expected to drop from £2.2m to £1.7m based on the overspend.

A "soft freeze" on recruitment and the use of agency staff was now in place, said the report.

It said vacancies were being reviewed on whether they were "business critical", the Local Democracy Reporting Service (LDRS) reported.

Deputy chief executive Andrew Jarrett said he was "hopeful" the overspend would fall by about £150,000 once the council was reimbursed by the government for a number of projects it has carried out this year, including an energy rebate scheme.

The update comes as the council prepares its budget for the next financial year, with a shortfall of almost £1m forecast.