The leader of St Albans City and District Council has issued a warning about the local authority's current finances.

Councillor Chris White told a meeting of the full council in his leader's report: "The current economic climate is affecting our residents and it is also affecting public finances, including this council’s budget position."

Cllr White was speaking shortly after the inflation rate hit a 40-year-high of 10.1 per cent in September.

He continued: "Inflation is driving up the cost of energy we use to deliver our services. Service contracts are increasing in line with much greater than anticipated inflation.

“These two examples are the result of the way the economy has changed since the council’s budgets were prepared last year.

“Those two factors alone are likely to cost in excess of £0.5m in the current financial year which will then carry on into the council’s base budget for next year, where we already have a gap to close.

“Our capital programme needs funding.

"The cost of borrowing is rising for us, just as it is for residents and businesses, so we have to recognise that in our budget preparations for the next financial year.

“These factors are outside of our direct control, nonetheless they will have a very real and significant impact on our finances.

“With officers, we are looking at what the various options are as we work to close the gap in our budget for this year and next.

"This work continues, and further updates will follow.”

In response, Conservative councillor Brian Ellis said: "Inflation caused by Vladimir Putin’s actions will affect everybody but the administration has made things worse...

"...Liberal Democrats voted for an increase of 4.04 per cent in the allowances at the last council meeting. The allowances were already high in relation to local authorities of similar size and could have been cut."

On the city's charter market, Cllr Ellis added: "The administration is planning to spend a significant sum to replace the existing market stalls.

"We consider that this is unnecessary.

"To help close the budget gap, projects planned but not committed could be postponed i.e. Fleetville Community Centre which will cost £3million."

Details of the council's cost-of-living services can be found at www.stalbans.gov.uk/cost-living-support.