Further evidence of the impact of the credit crunch on councils' coffers emerged this week, when two authorities revealed they were freezing local budgets to avoid a financial crisis. While national economists dithered over the technical definition of the UK's economic downturn, Mike Gardner, leader of Harrogate Borough Council, said local coffers were ‘a bit dire'. To avoid using up emergency reserves Mr Gardner has approved a freeze on new expenditures. ‘We've been saving money for a rainy day, and that rainy day has come,' he said. The leader of Craven, meanwhile, has placed the authority's finances under review and implemented a recruitment freeze below chief executive level.
