Bradford Council has forecast it will underspend £2.7 million of its budget this financial year, but says the pressure to make further savings continues.

A mid-year financial report, which will be presented to its executive next Tuesday, shows it is on track to make the saving on its £453.4 million spending plan for 2013-14.

But it says of the £16.3 million of savings that need to be implemented, its “main concern” was the delivery of £3.6 million savings in its adult services department as the demand for care for older people continues to rise.

There are planned underspends in departments including children’s services (£1.3 million) and financial services (£1.3 million).

However, it is expecting to overspend in sport and leisure (£0.3 million) and waste collection and disposal (£0.1 million). The Council says it is also “struggling” to meet its income targets in school meals, property rents, theatres, sports facilities, trade waste and land charges.

Council leader, Councillor David Green, said: “We continue to perform well and keep our expenditure under control given that we have to make savings at a time when demand increases for some such services, such as caring for an ever-growing older population.

“Being ever more efficient has to be business as usual, so I don’t make any apologies for an underspend as this is down to services continuing to make savings to protect frontline services as best as they can.”

Yesterday, the Telegraph & Argus revealed details of the controlling Labour group’s draft budget for next year, which will see a further £89 million of savings made through axing almost 700 jobs and cutting frontline services.

Early indications reveal £2.7 million of this year’s budget, which was allocated for specific two-year projects, will now be spent in 2014/15.

Coun Green said: “We have had to make £100 million cuts in the past three years and will have to make further cuts of around £115 million within the next three years, so we will have tough decisions to make. Nevertheless I am satisfied we are performing as well as we can half-way through the financial year.”

The Council’s property service predicts that by the end of this financial year, it will have made £27 million by selling buildings it no longer needs, cutting its backlog maintenance bill by £39 million. It will also save £4.4 million in annual running costs for the buildings.

Councillor Andrew Thornton, executive member for environment, sport and sustainability, said: “The property programme continues to deliver significant savings for the Council taxpayer by making the best and most efficient use of the Council's estate. In addition to cutting building running costs it is also delivering new ways of working and supporting regeneration of the city centre through the relocation of Council staff to city and town centre bases.”

The report also seeks approval for additional funding to accommodate the district’s homelessness service into Britannia House in Bradford city centre and Keighley Town Hall when it returns to direct Council control.