'Tough choices' and 'no easy fixes' for Windsor and Maidenhead's finances

The Royal Borough cabinet is set to address ‘serious’ financial issues that will necessitate ‘tough choices.’

It is ‘clear’ that the financial outlook ‘continues to be challenging’ says the officers’ report on the council’s five-year financial plan.

Figures show a forecast overspend of almost £5million against this year’s budget – and more than £10million over the next four years.

The council may need to deliver total ongoing savings of £10million from 2024 to 2029, unless government funding improves – in the form of grant or council tax flexibility.

“Whilst not a current likelihood ... the council remains at significant risk of financial failure due to the inability to raise council tax income,” wrote officers.

Inability to identify sufficient savings would ‘risk the council being unable to maintain minimum levels of reserves.’

“Any significant unexpected financial change could have serious consequences,” officers warned.

There is ‘a lack of clarity’ about levels of central government funding which makes it ‘difficult to plan ahead with confidence,’ says the Borough.

In addition, there is ‘a high level of uncertainty’ in the economy, including inflation and interest rates, which increase the cost of delivering services and the council’s major contracts.

Higher construction costs make it more expensive to maintain and deliver new housing and council infrastructure.

The council is set to spend £10.8million in the next financial year on interest repayments – this represents more than 10 per cent of the budget the council has to spend on local services.

COVID-19’s legacy also continues to reduce income in parking season tickets and leisure – expected to continue on a medium-term basis.

It is also seeing an increased number of adults requiring social care – which is set to rise in future.

The 2021 Census showed that number of 70 to 74-year-olds in the borough had increased by a third in 10 years. The council has seen increased demand on in children’s services too.

Both are statutory services that the borough must provide – so this has placed ‘considerable pressure’ on discretionary services, including Early Help services for children and families.

Without a balanced budget, the council will struggle to deliver such services.

The borough says it also needs to build up staff capacity in key areas – which further adds to budget pressures.

“The council faces serious financial challenges and must take some tough decisions and make changes to the way in which it operates,” officers wrote.

“In the current financial climate, there are few quick fixes.”

Next week cabinet will discuss the scale of the financial challenge facing the council with two reports about the council’s current and future budget position – and launch the budget process for 2024-25.

It will be holding a series of discussion events over September and October, followed by a wider public consultation in December.

Councillor Lynne Jones, deputy council leader and cabinet member for finance, said the council ‘recognise[s] that we will need to take some tough decisions.’

“We face challenges due to historical low council tax, low reserves, and high borrowing,” she said. “We will work to solve these challenges and, with the community, refocus on what’s important and needed locally.”