Cash-strapped council overspends by £14m in a year

Civic leaders in Slough have been trying to get to grips with the council's finances since 2021

A cash-strapped local authority needs to take "immediate action" after overspending by £14m over the past year, a council report has said.

Documents presented to Slough Borough Council leaders also revealed it is at risk of going £11m over its budget this year, with most of the extra money being spent on rising social care costs.

The council declared itself effectively bankrupt in 2021 and has tried to balance the books by making cuts, selling assets and raising council tax - but it has not generated the money it needs as fast as it had hoped.

The council's cabinet is set to discuss the report's findings on Monday.

The council hoped to net £400m from asset sales between March 2022 and the end of March this year, but it fell far short of that goal by raising £223.5m.

It said its target of £600m by March 2027 "proved unrealistic".

Council officers said effective management of its finances was "critical" to its recovery, and getting it to a point where it no longer had to rely on asset sales.

'Uncertainty'

The rising costs of social care is putting pressure on council budgets all over the country, as both prices and demand for services has increased.

Council documents said "national economic factors have impacted local government", including inflation and the continuing increase in demand for services, in particular for homelessness and adult social care.

Documents also said the unexpected resignation of its top finance boss Adele Taylor in April caused "a degree of uncertainty".

A "refreshed" strategy for council spending covering the period up until April 2028 – known as a medium term financial plan – is set to be put to council leaders next month.

The most recent one was only approved by the council in March this year.

Labour lost control of the council following local elections in May last year and it is now run by the Conservatives with the backing of Liberal Democrats.