Halstead Town Council could face a deficit of up to £40,000 by the end of the financial year.

The council has suffered a “significant decrease” in the amount of income it has received compared to the amount it expected, meaning it faces ending the year in the red.

The council gets income mainly through council tax and car park fees, but also from allotments and other assets.

Councillor Mick Radley pointed out the potential for the deficit at a town council meeting in August.

Minutes of the meeting have only just been made available online this week.

Mr Radley said: “What I pointed out was there could be a potential deficit of between £30,000 to £40,000.

“There might be a deficit.

“Just because we have that situation doesn’t mean we don’t have time to take some action.

“The town clerk, Mike Murkin, was actioned to go and look into this.

“It is still quite early on in the financial year, which finishes at the end of March.

“Income is down on what we expected it to be.

“The town clerk is looking into this so we can understand the situation better.

“We still have plenty of time, so it shouldn’t be a problem.”