THE government would show ‘no sympathy’ to Slough if it didn’t manage to deliver its budget, senior councillors were warned.
Cabinet members have recommended to full council to approve the 2022/23 budget, its five-year capital programme, its treasury management strategy, and council tax support scheme.
Slough is having to sell up to £600m of its properties and make £20m-worth of savings a year until 2028/29 in order to reduce its £760m borrowing debt and plug its £479m black hole.
To do this, the council has requested the Department for Levelling Up, Housing, and Communities (DLUCH) for a capitalisation direction of £307m, essentially using capital money as revenue for day-to-day services.
READ MORE: Slough chief executive sacked for "gross misconduct"
DLUCH said it was ‘minded to’ approve its request, meaning it is likely to agree but is waiting for the council to close four years’ worth of accounts and for it to be signed off by external auditors so it can receive definitive figures and assurances the situation won’t worsen.
With this letter, it gave chief finance officer Steven Mair the confidence to sign this budget off as balanced subject to the directions.
Government-appointed commissioners, who have been sent in to help the council get through its difficulties, have previously said the budget “exposes the recklessness in the way the authority has managed its affairs over the past few years.”
Speaking at the cabinet meeting on Wednesday, March 9, lead commissioner Max Caller, said: “It is essential that every budget holder in the council has proper personal accountability in delivering the budget within the cash limit set.
“This is not something that can be pushed around, ignored, or I’m sure members will find some more money if we go ahead.
“This is a discipline which hasn’t been a feature of this council up till now. It needs to be a feature of this year’s budget because if you can’t hold the budget now, you are not going to get sympathy from the department in future years.”
Conservative leader Dexter Smith (Colnbrook with Poyle) said the budget relies on a “high-risk strategy” as the council will receive will the capitalisation in tranches as its accounts are closed and signed off.
READ MORE: Basingstoke Odeon Cinema will be sold off by Slough Council
Although the council has requested £307m in capitalisation, it will get £61.7m when the 2018/19 accounts are closed, £40.1m for 2019/20 books, etc.
Cllr Smith said: “You may derive some comfort from the Kemi Badenoch [Levelling Up minister] letter. It’s better than nothing but it isn’t really covering you as fully as you, or any other councillor, would wish I would think in these circumstances.”
Council leader James Swindlehurst (Lab: Cippenham Green), said Cllr Smith was “milking this out for political purposes,” adding the only reason they could set a balanced budget was for the repeated capitalisations to cover the past few years.
He said: “I think you slightly overegg the issue about the government letter in that we cannot physically have the capitalisation direction until the accounts are finished, the number is absolutely definitive, and they give us the capitalisation direction to match off the number.
“That’s why the letter is ‘a minded to’ letter but that is effectively an agreement that is the arrangement on how we fund these things.”
The Labour-run council is proposing a 1.99 per cent increase in council tax and a one per cent rise in the adult social care precept – an increase of £44.56 for band D properties.
The budget will be debated and voted at full council on Thursday, March 10.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here