Northamptonshire County Council has abandoned plans to collect council tax from its boroughs and districts earlier than normal.
The proposal had been part of a stabilisation plan drawn up by government commissioners sent into the authority to help sort out its finances.
A report to councillors said: “There are conflicting legal views as to whether the regulations would permit the surpluses to be paid earlier to the county council by the districts and boroughs.
“It is clear though that in order to clarify the interpretation of the regulations the council would have to make recourse to the courts. In order to avoid unnecessary costs to the county council, the county council will account for the council tax surpluses in 2019/20 and reduce the savings target for that year to a more manageable level.”
Last week, Room151 revealed that the authority is set to balance its 2018/19 revenue budget, seven months after its former director of finance issued a section 114 notice predicting a £64.4m overspend.
