Slough Borough Council issues Section 114 Notice

Slough Borough Council has announced it will be pausing non-essential spending, in response to a report through the Director of Finance into the state of the council’s finances.

The Secretary of state for Housing, Communities and Local Government continues to be formally notified of the Section 114 Notice, that will begin to see the council seek government financial support.

The move follows months of action by the council to gain a complete understanding of, and start to tackle, the financial challenges it is facing, and detailed discussions on moves to complement council resources with demand for services.

James Swindlehurst, leader from the council, said: “The entire process of repairing council finances continues and our commitment to the supply of essential services remains unchanged: bins it's still collected, potholes still filled, care still provided to our most vulnerable.

“We've had a team forensically scouring our fiscal reports and processes. To support the resolve for better financial management, at the May council meeting, I took around the portfolio as part of cabinet and involved all the lead members in discussions to secure our financial future.

“A few of the issues being found go back several years, however this cabinet, appointed in May, will make the decisions required and put the council on the sustainable footing. The journey we have been undertaking using the transformation and restructure has helped us identify priorities for our communities and focus on what's required for Slough residents, businesses and also the town in general. We'll still engage all residents along with other stakeholders in the ongoing improvements to our council finances.”

As one of eight councils granted ‘exceptional support’ in the government, Slough had been set to undergo a completely independent review of its finances through the Chartered Institute of Public Finance and Accountancy, that has been appointed to check out its financial and risk management, deliverability of savings and efficiency.

Rob Whiteman, CIPFA CEO, said: “Slough’s section 151 officer has done entirely the right thing, using the aim of this legislative provision being to implement a brake whilst the council plans an accelerated change of direction to restore its finances.
 
"It seems that the resource requested by Slough through the capitalisation directive is insufficient to balance the books. In terms of any council, as the CFO has a vitally important role to focus on the positioning, financial recovery will need a concerted corporate response from elected members and chief officers."

Croydon Council issued the first of two Section 114 notices in November.