AS East Hampshire District Council announces a shortfall of more than £200,000 in its latest financial forecast, a report to its overview and scrutiny committee on Thursday was expected to outline the reasons for the deficit and show how it plans to balance its books.

Low interest rates, extra costs involved in employing temporary staff and contractors to deal with an influx of planning applications from large-scale housing developers, additional staff to deal with planning enforcement, IT costs and a waste contract which is estimated to be £136,000 over the original budget have all had an impact.

Property acquisitions, which are expected to increase rental income for the district council this year by £120,000, has had to be offset by £96,000 for repairs and maintenance work on council property.

A lack of tenants for two large units on the Woolmer Estate in Bordon, and with a third likely to be vacated this month, rental income looks like realising a shortfall of £45,000.

District councillors were expected to hear that "the council corporate strategy needs to transform the way it both finances and provides services which it is hoped will reduce the nett cost over the next four years".

There are also plans to spend up to £1.5m buying suitable properties for investment.

But the report delivered to district councillors last night will say that "the underlying debt position remains largely on track".