WINCHESTER civic chiefs have hailed their effective management of the public purse after underspending by more than £10 million this year.

The city council spent £11.8 million of the 2014/15 capital budget of £18.6 million, cabinet was told on Monday.

Most of the £7.4 million saving came from an unspent £4 million to buy and build property, with some cash saved on the refurbishment of Avalon House, which reopened last weekstarting June 29.

The council also spent £15.9 million of its general budget, covering key council services, £2.7 million less than expected.

Cllr Stephen Godfrey, the council's leader and finance chief, told Monday's meeting: "Although we have not spent all the money we planned to, what we have spent - and it's been a busy year - has been managed and controlled effectively."

He added: "This is despite the very many problems we have been facing with our finances, in terms of the variations and changes in projects, the legal challenges and the like."

Cabinet agreed to carry most of the money forward to the 2015/16 budgets.