Slough Borough Council has confirmed that it faces a deficit of £223.1m for this financial year, and a further estimated deficit of £84.1m for 2022/23.
In a Section 25 report, finance director Stephen Mair said that Slough’s position was “precarious” and the “seriousness of the council’s financial position cannot be understated”.
Slough, which issued a section 114 notice in July 2021, has been overseen by two government-appointed commissioners since December.
Mair’s report suggested that the council would need an “unprecedented level of support” through a capitalisation directive of £479m from the current year to 2028/29. It accepted that this was an “astonishing” figure.
Inadequate Minimum Revenue Provision (MRP) was highlighted as the biggest factor in the size of the capitalisation direction. There was an estimated MRP undercharge of £70m from 2008/09 to 2021/22, with a further £29m needed for 2022/23.
Even with the central government support, the Section 25 report said the council would need recurrent savings of £20m a year, which would be “very challenging”. Slough will also have to identify and deliver up to £600m of asset disposals.
According to the report: “The delivery of the budget and its associated savings still requires both members and officers to maintain focus to ensure the budget and agreed savings are delivered throughout the year and in future years.”
Rob Anderson, lead member for financial oversight, council assets and performance, said: “The council fully acknowledges the position it finds itself in as a consequence of its previous decisions, culture and approach and is determined to address this very serious situation.”
The Section 25 report will be discussed at an extraordinary budget meeting on 9 March.
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