RBWM finance arrangements 'heading in the right direction', say auditors

External auditors have said they have seen a number of improvements as the Royal Borough works to fix its finances – but there is still a ‘long way to go’.

Yesterday (Monday), external auditors for the Royal Borough’s finances, Grant Thornton, took the audit and governance committee through its latest report, covering the last financial year.

Auditors commented on the Royal Borough’s ‘value for money’ arrangements for key areas: financial sustainability; governance; and the three Es – improving economy, efficiency and effectiveness.

In last year’s report, all these areas were rated ‘red’, indicating significant weaknesses.

Nine key weaknesses were identified at the time, with nine recommendations to address these.

But the 2024/25 interim audit report showed the number of significant weaknesses identified by Grant Thornton had reduced to six, and the auditor said the council has made ‘rapid progress’ to establish a corporate grip.

Peter Barber from Grant Thornton, told the meeting at Maidenhead Town Hall: “Last year we concluded that [council’s] arrangements were inadequate in all areas.

“We have noticed lots of improvements and there is absolutely a long way to go but I do think that whilst it’s early days this committee can take some optimism and comfort that you are heading in the right direction.”

Fellow auditor Andrew Muter also said that, when it came to financial sustainability, the council produced a ‘balanced budget’ for 2025/2026.

But the auditor’s report still said the Royal Borough should further develop its medium-term financial plan (MTFP) to set out how it will ‘replenish reserves’.

Major development projects like the Maidenhead Golf Course should also be ‘assessed and monitored’ to avoid financial risks.

While the chair of the committee, Councillor Julian Tisi, recognised that there were significant improvements, he said the Royal Borough started in a very low position.

Cllr Tisi (Lib Dem, Eton and Castle) said: “There has been definite improvement but on the other hand let’s throw a bucket of cold water over it because this is from a low base and there is still a lot to do.”

Cllr Julian Sharpe (Con, Ascot and Sunninghill) had concerns about the Royal Borough’s reserves.

He said: “Looking at the medium-term financial plan it looks as if that’s going to be showing negative reserves until we get some more exceptional financial support (EFS) next year.

“The savings that we’re talking about are way below what is going to be useful to actually turn the council’s finances around. They’re basically trivial.”

He wanted to make sure other strategies to put the council’s finances on a ‘robust standing’ were in place, without needing to rely on Government borrowing.

Ian O’Donnell, the interim executive director of resources, said that improvements are being made.

However, Mr O’Donnell said: “We are doing as much as we can but I’m afraid I remain very pessimistic about whether that will be enough to close the current budget gap.”

The only solutions for closing the budget gap involve increasing the Royal Borough’s council tax and getting exceptional financial support, he warned.