MONTHLY financial updates have been demanded by Southampton councillors following exclusive Daily Echo revelations that the council is facing a £22 million overspend.

At a cash crisis meeting at the Civic Centre last night, Liberal Democrat Leader Councillor Adrian Vinson, who chairs the council's important corporate committee, said councillors and Southampton residents had to be kept informed - and he wanted monthly financial reports to his committee.

"Control over the council's finances must be restored as an urgent priority, and the administration must be held accountable in public.

"I have therefore asked for a monthly financial report to be brought to the corporate committee, monitoring this year's spend and informing council and the public on the prospects for next year's budget as they develop," he said.

Mr Vinson told the meeting he was making the request "in view of the horrendous budget problems recently reported in the Daily Echo."

A confidential report leaked to the Daily Echo predicted a £22 million capital and revenue overspend for 2001/2002 - unless the council sells off assets, cuts services and raises charges. The report - drawn up by Councillor Peter Jenks and only for the eyes of the ruling Labour group - paints a stark picture of the financial realities.

It calls for "real cuts in real services of some millions of pounds" and stated that action must be taken now.

The dire forecast is being made at a time when the council is having to adjust the current year budget to keep services going.

Lack of government funding for Social Services is being blamed for the immediate financial problems and last night at the emergency meeting Councillors Adrian Vinson and Peter Jenks voted through measures to draw just over £2 million from reserves to keep essential services going.

Mr Vinson said: "It is appalling that it should be necessary to draw large, unplanned sums from balances in the middle of the financial year. However, partly through the failure of the administration to adequately manage and monitor the council's finance, some draw is unavoidable if key services are not to collapse."

Tory group leader Councillor David Abraham refused to back the decision to draw from the city's money pot and voted against the move.