Southampton City Council executives will be tightening their fiscal rules and checking everything the authority spends over £50 to create a ‘culture of financial discipline’.

The latest move comes amid financial struggles for the local authority which could lead to Government intervention by October this year if the council does not make tens-of-millions of pounds worth of savings.

The £50 limit to unchecked expenditure will apply to all aspects of the council, meaning executives will have their work cut out clearing staff spending.

READ MORE: Southampton City Council in 'crisis' talks with Government over cash

At a governance meeting on Monday, July 24, fears were raised that this increased red tape could ‘slow down’ council services.

With a £50 limit, even something as minor as a full tank of petrol on a council vehicle would have to be sent to an executive, checked and cleared, before it can be filled.

Daily Echo: Mike Harris Chief Executive

Mike Harris, the council’s CEO, explained why the ‘very low’ figure was necessary and said that in order to help mitigate a slow-down of services, some ‘exemptions’ will be implemented.

Admitting it is a 'very low sum', he added: “There are a whole range of exemptions we have agreed. Social care packages would be one that we can’t hold up (and) on a different level where planning applications need to get posted on lampposts.”

Mr Harris said he is hoping it will not slow down services, but cannot guarantee it.

He said: “It’s reflective of the gravity of the situation we are in. We will seek to ensure that processes are as clear as possible with relevant exemptions where possible.

“It’s a really important message to all colleagues that financial discipline and consideration is important.”

However, it is not only a slowing of services that councillors expressed concerns over. 

Daily Echo: Bevois Labour Mike Denness

Labour councillor for Bevois ward Mike Denness, who was in the governance meeting, said the plans for a ‘culture’ of financial discipline’ could actually, counterintuitively, see expenses rise.

Cllr Denness said: “A company I worked for did a similar thing.

“It was far easier for me to buy a printer cartridge for forty pounds and buy two of them rather than buy two at £70 saving the organisation £10 but to buy two individual items was quicker because the length of time it would take to get signed off would be not practical.

“Are we in danger of being in a situation like that, where it’s easier to push something through for a cheaper value rather than go through the process which will actually save money for the council in the long run?”

Mr Harris admitted that staff could ‘possibly find ways around the system’ and said that the executives will ‘look to root them out’.

The city council boss said: “We’re not looking to (stifle) the efficiency of the council, but we are looking to install a really important sense of financial discipline.”