£20m black hole discovered in budget for building projects

MIDLOTHIAN Council is facing an estimated £20 million shortfall in its general services budget next year.

At a meeting of the council cabinet, councillors heard how the budget for all current committed projects totalled more than £30 million, a large proportion of which related to the controversial Schools Plus scheme.

There is also a £2.5m requirement to fund two PPP projects in addition to committed projects.

It is estimated all of this money will be used up this year, leaving an estimated pot of £12.6 million next year, which is not enough to fund all of the projects for 2008/9. The council will now have to borrow money to cover the £19.9m shortfall until larger capital receipts and developer contributions are received.