Slough council aims to no longer need Government support by 2028/29

Slough Borough Council is aiming to no longer need Government support by 2028/29, in an attempt to have the authority ‘stand on its own two feet’, a scrutiny panel heard.

The cash-strapped local authority has been relying on a capitalisation direction – otherwise known as Exceptional Financial Support (EFS) – from the Government to be able to set its budgets in previous years.

But the draft budget for 2026/27 and the three-year medium-term financial strategy sets out plans to no longer need EFS by 2028/29.

At a corporate improvement scrutiny committee meeting on Wednesday (February 4), Councillor Puja Bedi (Con, Colnbrook and Poyle), said the ‘aim’ is to have Slough ‘stand on its own two feet’.

Cllr Bedi said: “When we say we want to put this council on the path to financial recovery we will deliver it.

“Our overarching aim since 2023 has been to put this council on the path to standing on its own two feet. In this budget we’re clearly showing that that is within our reach now and is our objective.”

Slough will request £42.9million of EFS from the Government for the 2026/27 financial year and a further £22.4million in 2027/28.

But by 2028/29, the council is ‘projecting to be no longer in need’ of exceptional support, the meeting heard.

Councillor Subhash Mohindra (Con, Upton) asked what would happen if the Government did not approve this borrowing.

Ian O’Donnell, the council’s interim executive director for corporate resources, said the local authority is in ‘the hands of the Government’ but it is ‘highly unlikely’ Slough’s request would be rejected.

Mr O’Donnell said: “In the end, we are obliged to set a budget, and if they were of the view that we had asked for too much, I think we’d have to understand from them what the issues were.

“If necessary, we would have to delay the budget setting process until that had been resolved.

“It would not be desirable for the Government to place us in that position. I think it’s highly unlikely that they would take that view about our [EFS] request.”

For the next three financial years, council tax is not expected to increase by more than the 4.99 per cent threshold, he added.

Cllr Frank O’Kelly (Lib Dem, Cippenham Village) believed a three-year budget was ‘interesting’, but he said keeping the council tax at the maximum cap is ‘terrible news to residents’.

Cllr O’Kelly said: “We would much prefer to hear that the cabinet or the administration had a plan to reduce costs in temporary accommodation and children’s services, to reduce the vast amount of money that residents are paying into that area and therefore give them some relief.”

Mr O’Donnell explained that the Government’s position would be that income from council tax needs to be maximised because otherwise ‘it’s not likely’ the Government will lend Slough the money it has asked for.

The draft budget also showed there are ongoing pressures totalling £25.06million from 2025/26, which are expected to have an impact on the next financial year.

This includes pressures from temporary accommodation, adults and children’s services.

Mark Hak-Sanders, the council’s director of financial management and strategy, said it’s ‘difficult to predict the unpredictable’.

But he added that the proposals currently include a ‘modest contingency’ level.

For 2026/27, there are £15.45million of savings planned, which are expected to rise to £37.15million by 2028/29.

Cllr Christine Hulme (Lab, Herschel Park) said there is still information missing in the draft report, however, around children’s services, SEND and the transformation programme.

Mr O’Donnell reassured Cllr Hulme that the full budget report will have ‘quite a substantial section’ on SEND.

“The transformation programme for SEND is still being developed,” he said.

“What is clear is that we’re going to have to invest more in SEND, and that there are opportunities to improve the service and [its] efficiency, which can be driven out through transformation, and that includes early intervention.”

The draft budget proposals will also go before cabinet and then will be discussed at a full council meeting at the end of February.