The Liberal Democrat run council has posted a £71,000 budget underspend in the wake of a swathe of cuts.

Kingston Council warned last July it could end 2010-11 with a £6.8m overspend on its £120m net budget, but the final accounts came in under target.

Last October the council saved £420,000 by cutting the number of senior managers, and this week axed five more chief officer posts, saving a further £470,000.

However, senior staff snubbed councillors’ requests to take a voluntary 10 per cent pay cut.

The council also saved money by axing the positive start project for vulnerable families, encouraging home care rather an expensive residential placements, and cutting dog mess bags from council parks.

However, opposition councillors said the underspend was due to savings that were out of the council’s control, including £827,000 after the Government cancelled the Building Schools for the Future programme.

Tory budget spokesman Councillor Priyen Patel said: “A further £206,000 was saved due to a one-off income of VAT rebates concerning parking fees dating back over 40 years.

“Taking these two un-budgeted events into account the council would of in fact recorded another overspend in excess of £962,000.”

Last year the council had to dip into its reserves following a £299,000 overspend.

Councillor Rolson Davies, executive member for finance said: “We know our residents are facing huge financial challenges, so on top of the zero per cent council tax rise we have also brought the budget in on time and with an underspend of £71,000.

“This is tremendous news for our residents and the strict financial controls we put in place have helped deliver this budget. We will continue to put our financial strategies into practice as we have set a very demanding budget for this financial year with a further target of £13m savings.”