Update on council’s financial position

Cabinet is set to discuss a report about the council’s current financial position, at a meeting on Monday.

The Quarter 1 (Q1) budget management report highlights some recent findings and known challenges ahead, along with plans to urgently address the issues.

Thorough discovery work into the council’s finances is now complete for the 2023/24 and 2024/25 financial years. The accounts for these years are now complete and closed, which is a significant step in managing the historic financial issues. This includes achieving a balanced position for the recent financial year of 2024/25 which was managed through careful financial measures.

This work has clarified the extent of the exceptional financial support (EFS) from government the council has required over recent years. A total sum of £313m has been used from EFS to balance the budgets between 2018 to 2024.

For this financial year, the figures for the first quarter are now available. The 2025/26 Q1 period, up to 30 June 2025, shows a provisional overspend of £20.729m projected, with measures identified to cover about a third of this. Further contingencies and options are being explored to work towards a balanced end of year budget.

Urgent actions and a rapid review are underway to address issues arising for 2025/26. This includes pressures from the increasing costs in areas such as temporary accommodation and adult social care. These services were identified as areas of increasing spend and demand last year, when senior council officers held project rooms to do a deep dive into their services.

Since then, work has been ongoing to reduce costs and make efficiencies and improvements. However, advice included in the report states there is no quick fix as there is not one single solution but rather many actions required in combination.

Teams across the council are working hard on plans to plug the known gap in these, and other service areas, and to keep on track with this year’s budget.

Councillor Dexter Smith, leader of the council, said: “We are in a better place than we have been in for many years because we have a clear plan now of how we intend to deliver services within our means.

“One of the major issues we have is the difference between what we pay in Housing Benefit and what we receive from the Department of Work and Pensions (DWP) in Housing Benefit subsidy. We can only claim approximately 34% of Housing Benefit subsidy on our costs. If changes were made nationally to the amount we were able to claim, it would make a significant difference for Slough.

“We still have a huge challenge ahead to achieve financial sustainability. Across the country, costs continue to spiral for temporary accommodation and adult social care. This is something which we are tackling head on locally to try to find a solution.

“We are identifying a range of initiatives, some which can be implemented immediately, and some which will take more time.

“We continue to be committed to making things right, ensuring best value in our budgets, providing essential services, and looking after our residents.”

The financial position led to the council’s Best Value Commissioners issuing their latest instruction note on 12 August, which stated actions required to keep the finances on track. This included temporary measures such as a recruitment freeze and review of agency assignments, along with reviews of service revenue spend, savings measures and revenue projects council wide. The aim is to enable the council to operate sustainably and in line with good value council remits.

Find the Cabinet papers on the council’s website.