An award-winning council department is facing a budget overspend of nearly £500,000.

In the past Braintree Council's contract services department has won awards for its quality and for investing in staff.

Braintree Commercial Services was set up in 1981 to bid against private firms for work including street cleaning and domestic and trade refuse.

Braintree Council awarded a six-year contract to Braintree Commercial Services in 1996.

But, in a report to a strategy group meeting of the council, chief executive Annie Ralph outlined the year-end figures for 1999/2000, revealing an overspend of £141,400 in 1999/2000.

Such a high overspend led to a financial audit to look again at the estimates for this financial year.

These show an expected overspend of £494,627.

Mrs Ralph stressed the losses were not due to any misappropriation.

John Kotz, vice-chairman of the strategy group, said: "As a council taxpayer I am more than concerned but there are certain protocols when dealing with matters like these."

The service department was awarded the quality standard by British Standards in 1992 and since 1994 has been recognised by Essex Training and Enterprise Council as an Investor in People.

Councillor Arthur Mascall said: "The most important thing is that there is a loss but it could be very small, we just don't know. There is a need to have a full inquiry and that will happen."

Councillor Barbara Buchan, who sits on the audit and performance scrutiny panel, confirmed an inquiry would take place.

She said: "Our job is to make sure the people of Braintree are getting value for money."

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