FORMER Southampton council leader Simon Letts is set to lead on the stricken authority's finances after a major report said spending had been 'out of control'.

Councillor Letts will replace Cllr Steve Leggett, who was cabinet member for finance and change.

The shake-up comes as the council tries to make £20.9m of in-year savings, with a £56m shortfall predicted by 2026/27. Voluntary redundancies are being made.

A Chartered Institute of Public Finance and Accountancy report set to be considered at cabinet tomorrow - where Cllr Letts will assume his new role - said: "The council has, in recent years, relied on reserves to meet gaps in its budget.

"It is evident that there has been a culture that overspends will be covered."

Daily Echo: Cllr Satvir KaurCllr Satvir Kaur (Image: Stuart Martin.)

Labour leader Satvir Kaur said she was 'delighted' Cllr Letts is returning. He was previously leader, and before that cabinet member for finance. 

Cllr Kaur has been chosen to run for MP in the Southampton Test constituency when stalwart Alan Whitehead steps down at the next election.

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Cllr Kaur said Cllr Letts has a "strong wealth of experience, which will help us deliver our robust financial plan, and navigate through the economic disaster inflicted on us by the Tories nationally and locally, that every household in Southampton and councils across the country are experiencing right now”.

Tory opposition group leader Cllr Dan Fitzhenry previously said the administration denied having a finance problem "but now only two months after the recent local elections, they admit they have a £50m gap in their finances".

Current finance member Cllr Leggett will leave the cabinet.

He said: "I’m grateful to previous Leader Christopher Hammond for taking a chance on a newly elected councillor and giving me the opportunity to lead on the Green City, and to our current Leader for putting her trust in me to take on a large and complex portfolio.’

"I look forward to working closely with ward colleagues and residents of Banister & Polygon to make the ward cleaner and greener."

Other changes in the cabinet will see Coxford ward member Matt Renyard return to his role running the Safer City portfolio.

Councillor Eamonn Keogh, who currently has the portfolio for environment and transport will now also take on waste.

Cllr Kaur said: “I want to thank Cllr Leggett for his five years on the front bench, and the energy, hard work and commitment he has brought to his various roles. I look forward to working with him as an active councillor for new ward, Banister and Polygon.”