'Eye-watering' £20m overspend shows Slough council's 'very serious financial challenge'

A cabinet member has warned Slough Borough Council is facing a ‘serious financial challenge’ after a budget report showed an ‘eye-watering’ £20.7million overspend.

At a cabinet meeting on Monday, September 15, councillors scrutinised the financial position for the first quarter of the financial year 2025/2026.

A report showed the projected overspend was £20.7million, but officers have identified mitigations to reduce this to £13million.

Speaking at the Observatory House meeting, the chair of the cabinet, Councillor Wal Chahal said: “That’s an eye-watering number. That still represents a very serious financial challenge.”

Dave McNamara, the interim director for financial management and strategy, warned that this is ‘the most critical financial situation’ the council has been in for a number of years.

Adult social care, children’s services and temporary accommodation are the three areas putting the most pressure on the local authority.

For children’s services, there are ‘forecast pressures' totalling more than  £1.4million with extra money spent on educational psychologists and education, health and care plans (EHCPs).

But Sue Butcher, the executive director of children’s services, said: “It’s important to note that we were originally allocated a growth bid [funding application], and the growth money was then taken back.

“We are continuing to be as judicious as we can with our spending.”

Cllr Chahal (Con, Langley Marish) said the council’s savings ‘remain fragile’ with the local authority still ‘heavily dependent’ on Exceptional Financial Support (EFS) from the Government.

This allows councils to borrow money to support day-to-day (revenue) spending.

A further £15.7million of EFS is expected to be granted for Slough Borough Council.

Cllr Chahal said: “[The report] shows just how acute our position remains … the scale of the overspend remains deeply concerning.

“Every single cabinet member needs to work very closely together and look under a microscope at every item of spend … and ensure that we hold to our budgets.

“I appreciate some of these are out of our control, but we’ve got to apply a greater level of rigour to every penny that is spent. It’s residents’ money.”

Members raised their concerns about what steps are being taken to mitigate the high spending on temporary accommodation.

Cllr Puja Bedi (Con, Colnbrook and Poyle) said: “It’s a countrywide issue.

“What are our teams putting in place to ensure that those external pressures don’t impact the budgets that are being worked towards?”

Pat Hayes, the executive director for regeneration, housing and environment, said that not everyone in temporary accommodation has been applying for housing benefits which the council could then claim back through a housing benefits allowance.

Mr Hayes said: “That’s where the big money is effectively.

“That is being rectified now. It’s a historic issue which goes back to the time of COVID-19 when no accurate records were kept, and people were just being placed in properties.

“Whatever we do the flow of people into the system is still very, very high.”