SLOUGH Borough Council has urged the government to allow them to sell some of their assets in order to fill a £10 million black hole and balance their 2021/22 budget.
According to their revenue budget papers, the council is currently in talks with the government about seeking permission for a ‘capitalisation directive’ – effectively giving them greater flexibility to use capital funds for day-to-day spending.
The council boiled why they are seeing a £10 million funding hole in their budget down to three reasons.
One of which, like most local authorities, is the impact of Covid-19 in income and growth pressures.
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Another is a one-off cost of £5.4 million in business rates to a company in the borough owed since 2010.
The Slough Children’s Services Trust deficit of £5.5 million is still a threat to the council if they switch to a different operating model next year – but talks are still ongoing with the Department for Education to fill this gap.
The council has almost £100 million worth of assets purchased and is eyeing selling them off to fund this gap.
Some of those at-risk include the Odeon cinema in Basingstoke, Halfords on Bath Road and Wickes in Wolverhampton, among many others.
It’s expected the government will permit the council funds of £12.2 million in revenue spend to balance their 2021/22 budget.
An external advisor to the government said: “The council has limited resources in terms of revenue reserves to balance the 21/22 revenue budget. Without the two unexpected items in terms of business rates and the children’s trust the budget would have been balanced.”
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In the medium-term financial strategy, finance officers have warned the council the budget gap could rise to £19.8 million by 2023/24.
In Slough Borough Council’s budget, a council tax increase is also proposed of 4.99 per cent – which means a band D property could see a £70.83 spike.
The budget will go to an extraordinary scrutiny meeting this Thursday – before it goes to cabinet to finalise their recommendations.
It will then go to full council on March 8 for debate and vote.
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