Slough chief executive admits council's finances are "bleak" in leaked video

That’s what Slough Council’s chief executive, Josie Wragg, said in a leaked video message to colleagues, updating them on the local authority’s current financial circumstances.

In the video on Youtube, Ms Wragg revealed the council is in a ‘bleak’ and ‘challenging’ situation following two damning audit reports into the authority’s 2018/19 accounts, which heavily panned how they handled their finances.

In the reports released last month, external auditors Grant Thornton UK LLP highlighted:

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• insufficient capacity and skills within the finance department,
• inadequate preparation of financial statements,
• inadequate general and earmarked revenue reserves,
• inadequate governance, monitoring, and controls over our outside groups and companies.

The report added the council’s reserves spiralled from £30.9 million in 2012/13 to £4.380 million in 2018/19, placing it as one of the lowest levels of all national local authorities.

In February, the council requested a £15.2m capitalisation direction from government, which involves the local authority selling off some of their assets to plug a £10 million gap caused by owing a company millions in business rates since 2010, and absorbing the Slough Children’s Services Trust deficit.

While the chief executive didn’t shy away from the challenges and tough decisions the council may have to take, she said they are ready to make these “once in a generation” changes to build a “really strong” organisation.

She said they have assembled an “A team” financial experts to work on the accounts, review the finances and financial practices, and closing the budget gaps for 2022/23 and beyond, which totals £18 million.

Slough Borough Council (Image: Google Maps)

According to the chief executive, they have “uncovered” and “exposed” some additional issues as well.

In closing that gap, Ms Wragg said the council is looking at proposals to close that gap which could include cutting the use of agency staff, reviewing assets to sell off, as well as reviewing job positions and vacancies at the council.

However, no decision as of yet has been made.

Ms Wragg explained by doing this work, it will lead to “good, emerging practices” to the council’s financial processes.

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She said: “We are in a very challenging situation based on poor financial practice over a number of years – but we are a very strong and determined organisation.

“We now have an incredibly strong leadership team and staff cohort and that’s been as a result of some of the work we’ve done around our futures.”

A Q&A session was meant to happen with colleagues within Slough Borough Council – but the chief executive swapped this for the video as it would have been “very difficult” to answer all questions “open and fairly”.

In her closing remarks, Josie Wragg said: “I know you’re apprehensive. I share that and I can’t tell you the rollercoaster of emotions that I’ve been on and, as we share news with colleagues, I see that emotion happening.

“That’s because you and I care so passionately about what it is we do. So, if we didn’t have that emotion, that would be a bit more of a worry.

“I know we can do this as an organisation and work through that because we can work collaboratively and together, and we will get this organisation through this.”