Town hall bosses feel heat following housing budget fiasco

5:22pm Tuesday 8th July 2008

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Labour's town hall bosses are set to come under fire at a meeting tomorrow night after it emerged blundering council officers could have wasted millions of pounds by booking accommodation for the borough's homeless which was never used.

Rumours of the gaff emerged after figures were published showing Lambeth council's housing department overspent its budget by a massive £6.5 million last year.

It is believed the 60 per cent overspend - £5.2 million of which went on temporary accomodation - was due to six and seven figure contracts being signed with private landlords for housing which could then not be filled.

Critics say the gross miscalculation over short-term housing demands could lead to cuts in other services for the borough's council tennants - or affect spending in other areas - as the finance department desperately attempts to balance its books.

Lambeth's cabinet member for finance councillor Jim Dickson has warned that housing staff responsible for the blunder could lose their jobs following a a formal management investigation.

Yet it is coun Dickson himself who is set to feel the heat at tomorrow's full council meeting, when he faces questions from Lib Dem finance spokesman Coun Gavin Dodsworth regarding his competency to manage Lambeth's finances following council overspends totalling £10m.