Agenda item

The Mayor varied normal procedure rules to allow the Chief Executive, Section 151 Officer and the Council’s external auditors, Grant Thornton, to address the meeting; following which they received a number of questions from Members.

The Section 151 Officer highlighted Slough’s borrowing per head of population in 2015/16 compared to 2020/21, which saw the Council move from a position of twenty first to the third highest borrowing rate in comparison to other local unitary authorities. The Minimum Rate Provision from 2011 to date was explained and it was noted that the estimated accumulated deficit as at 31 March 2022 was £111.7m and that this was estimated to increase by £62.4m to £174.1m by 31 March 2025. Approximate savings of circa £16-18m were required in each financial year to address the deficit, which were likely to include the sale of assets held by the Council. Although financial experts had been brought in to address matters, given the scale of the issues that had been identified it was likely that further resources in the finance team would be required.

In addressing the meeting, the Chief Executive acknowledged the current financial situation was due to the accumulation of a number of financial issues over the years. Governance arrangements had been strengthened and the Council was working closely with MHCLG and external auditors. Members were requested to endorse the Chief Executive’s response to the S114 report as detailed in the report.

Paul Dossett, from Grant Thornton, the Council’s external auditors, stressed the importance of collective responsibility from officers and members in taking measures to restore the Council’s finances. The Council was facing a hugely challenging period and radical measures would need to be taken to improve the financial position, which included the need for investment in the finance team and the possibility of cuts to front line services.

It was moved by Councillor Swindlehurst,

Seconded by Councillor Akram,

“ a) Endorse the findings in the Section 114 report; 

b) Endorse the Chief Executive’s response to the Section 114 Report, including, specifically:

the proposals to control in-year spending;

the proposals for the budget setting process for 2022/23, including the role of Overview and Scrutiny and plans for public consultation;

  c) Note the Council’s ongoing discussions with MHCLG in relation to securing a further capitalisation direction;

  d) Note the Chief Executive’s response and that if it is not delivered, and/or sufficient savings are not identified, the s.151 Officer may issue a further s.114 report.”

(Councillor Qaseem left the meeting)

The recommendations were put to the vote and agreed unanimously.

Resolved –

a) Endorse the findings in the Section 114 report; 

b) Endorse the Chief Executive’s response to the Section 114 Report, including, specifically:

·  the proposals to control in-year spending;

·  the proposals for the budget setting process for 2022/23, including the role of Overview and Scrutiny and plans for public consultation;

c) Note the Council’s ongoing discussions with MHCLG in relation to securing a further capitalisation direction;

d) Note the Chief Executive’s response and that if it is not delivered, and/or sufficient savings are not identified the S151 Officer may issue a further s.114 report.