Slough council asset sales 'remain off track'

External auditors have said Slough Borough Council’s governance improvements are ‘very comforting’ but its savings and asset sales ‘remain off track’.

On Wednesday, external auditors for Slough Borough Council’s finances, Grant Thornton, took the audit and governance committee through its latest report, covering the last financial year.

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

Speaking at the meeting at Observatory House, Julie Masci from Grant Thornton said the council’s governance is ‘moving in the right direction’ but its financial sustainability ‘still remains a concern’.

Ms Masci said: “The council is making progress. It’s not universal across all areas but there is clearly some evidence this year that things are moving in the right direction.

“[The council] got under the detail of a lot of things that have been sort of bubbling under the surface, that have not been able to have a light shone on them up until this point.”

Four statutory recommendations for governance have been resolved since last year.

But the interim external report showed the local authority is not financially sustainable and does not have an ‘adequate’ level of reserves.

External auditors also found that the council does not have a long-term ‘transformation plan’ for its finances.

Grant Thornton issued four new recommendations for improvements to the economy, efficiency and effectiveness of the local authority.

But auditors said these new ‘significant weaknesses’ have been added because the auditors had better ‘visibility’ of some issues.

The chair of the committee, Councillor Frank O’Kelly, said these are issues the council is now aware of but said ‘it’s harsh’ to have them highlighted by external auditors.

Cllr O’Kelly (Lib Dem, Cippenham Green) added: “But when you know [the issues] are there you can build on it.”

Cllr Subhash Mohindra (Con, Upton) agreed but said that if the council is unable to sell its assets fast enough it cannot bring in more reserves.

Cllr Mohindra wanted to know what the council should do going forward.

But Ms Masci said this is more a question for the council’s officers.

Ms Masci said: “The risk to the council is your cash levels are going to continue to drop as you don’t deliver your savings and don’t get interim asset disposals and so the council is going to effectively need to borrow more money.”

Will Tuckley, the interim chief executive, said officers were aware of the low levels of savings and asset sales but this was due to an ‘overoptimistic’ estimation.

Mr Tuckley said: “We are absolutely acutely aware that the level of reserves is not high enough to enable us to demonstrate we are financially sustainable in the long term.

“As part of the 2026/27 budget progress … we need to have a very clear reserves strategy that demonstrates how we can replenish those reserves.

“Strategically the programme was over-optimistic in the beginning. So, the original estimates were probably over what could realistically be achieved.”