Police probe £4m council deficit

A council committee is conducting its own investigation

Police are investigating possible financial irregularities at Borders Council in connection with a £4m deficit in the authority's education budget.

An inquiry has been launched amid fears that the overspend could force job cuts or school closures.

Council officials have moved to play down the financial difficulties.

A working group has been set up to examine how the budget problems arose.

School meals staff might have to go and you may in fact have frontline teaching staff going

Christine Grahame, SNP MSP

The £3.9m deficit, which has built up over the last two financial years, emerged earlier this month.

It prompted claims from teaching unions that schools could close and some teachers could face redundancy as a result.

In a statement, council convener Drew Tully said: "There is nothing new about the fact that the education budget is overspent.

"Budget overspends have been projected for most of the last two years and these have regularly been reported to the education committee.

"Most of the overspending has arisen as a result of increased demand on the education service.

"There are very clear pressures in a number of areas, including devolved school management funding, special education, transport, school meals, nursery education and staff turnover.

"Whilst there is clearly something wrong, it is not a case that money is 'missing' or that it has not been spent on services for our young people."

'Fundamental cuts'

The council's former assistant director of education, John Taylor, was dismissed from his £50,000-a-year post last week because of gross misconduct, but the authority will not comment on whether there is a link between his departure and the fraud investigation.

Scottish National Party MSP Christine Grahame said she was now concerned for the future of the education service.

"There are fundamental cuts which maybe required. I am hearing from teachers and headmasters telling me they have fears about losing staff.

"Auxiliaries in special education don't know if they will be working next year.

"School meals staff might have to go and you may in fact have frontline teaching staff going," she added.