IMPROVEMENTS to a day centre are on hold and investments will be cashed in to pay off almost £8million of council overspending.
Harrow Council chief executive Michael Lockwood apologised to taxpayers last week after auditors discovered spending of £7.8m had been agreed by junior civil servants in the children's services department without approval.
It was spent on construction projects at Whitmore High School, in Porlock Avenue, West Harrow, and sixth form facilities at nine secondary schools.
Mr Lockwood initially explained that to cover the extra debt the council would take out a £6.3m mortgage, with interest and repayment fees of £300,000, and divert £1.5m from other public building projects. But this week he said the situation had been reviewed and the council 'will not be resorting to bank loans', as explained in an open letter to readers on page 14.
Mr Lockwood said: "Instead we will pay it off using our cash balances, which means we will forgo £120,000 per year at current interest rates rather than £300,000.
"I have also made it clear that residents will not foot the bill for this error as we will take action internally to cover this loss."
A further £1m will be taken from the budget for 'place shaping' research, such as the possible development of Harrow Civic Centre in Station Road.
A council spokesman confirmed that the remainder would come from 'non-essential' improvement works at Bentley Day Care, in Uxbridge Road, Harrow Weald, and at a social services office in Buckingham Road, in Edgware, costing £250,000 and £200,000 respectively.
The authority has not confirmed whether these projects will appear in future budgets.
A spokesman said: "All of the community and environment projects in the capital programme, including work on roads, parks and public spaces, will go ahead as planned."
