Staff must “claw back” savings after early forecasts show Watford Borough Council is facing a £300,000 overspend for the current financial year.

The expenditure for 2010/11, as at August 31 (period five), was predicted to be £17,638,000.

However, the original estimate was £17,347,000 – a current overspend of £291,000.

At the council's Cabinet meeting on Monday, Councillor Andy Wylie said the overspend was the result of the current economic climate and a drop in commercial rent received by the council, particularly from Charter Place and the former Woolworths building.

But he added that the council's management team were looking at ways to “claw” the money back.

“Period six (up to September 30) will provide us with more realistic forecasts and individual departments are being asked to look at vacancies and salaries with a view to banking any positive forecasts we have,” he said.

“We're not in as serious a situation as other councils but £300,000 is something we want to make sure we claw back at the end of the day.”

Councillor Andrew Mortimer, chairman of the council's budget panel, said: “Our main concern was the £291,000 represents costs that are not easy to sweep under the carpet because they're not going to happen again. They are fundamental costs.”