An economy drive has turned Brighton and Hove City Council's financial fortunes from red to black.

Councillors were warned by officials in September that the authority looked like being £1.8 million overspent for the financial year ending in March.

The policy and resources committee has now been told the year finished with a surplus of £1.4 million.

The total budget is £250 million and the council has spent £3 million less than predicted.

money saved will go back into council reserves, which the district auditor says are too low.

Council leader Ken Bodfish said: "Being overspent is a serious issue. The only way you can get the money back is by making cuts or adding further to the annual increase in council tax, neither of which we want to do.

"It's a tribute to staff who have taken a very responsible attitude to their use of public money."

Two council departments were overspent last year.

Adult social care exceeded its budget by £1.2 million and children, families and schools by £800,000.

Coun Bodfish said: "These are departments where we have no control over demand, such as placing children with agency foster carers or looking after older people.

"But we do whatever it takes to meet that demand."

Savings were made by reducing spending on goods and services, looking for new sources of income or postponing replacement of staff who have left.

Part of the savings came when the council won an £800,000 business rates rebate from the Government.

It followed an appeal over the value of the King Alfred leisure centre in Hove and the Prince Regent swimming pool in Brighton.