Slough Borough Council issues Section 114 Notice

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

The Ministry of Housing, Communities and Local Government has been formally notified of the Section 114 Notice, which will see the council seek government financial support.

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

James Swindlehurst, leader of the council, said: “The process of repairing council finances continues and our commitment to the provision of essential services remains unchanged: bins will still be collected, potholes still filled, care still provided to our most vulnerable.

“We have had a team forensically scouring our financial statements and processes. To back up the commitment to better financial management, at the May council meeting, I took on the portfolio as part of cabinet and involved all the lead members in discussions to secure our financial future.

“Some of the issues being found go back several years, but this cabinet, appointed in May, will make the decisions required and put the council on a sustainable footing. The journey we have been undertaking with the transformation and restructure has helped us identify priorities for our communities and concentrate on what is required for Slough residents, businesses and the town as a whole. We will continue to engage all residents and other stakeholders in the ongoing improvements to our council finances.”

As one of eight councils granted ‘exceptional support’ from the government, Slough was already set to undergo an independent review of its finances by the Chartered Institute of Public Finance and Accountancy, which has been appointed to look at 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, with the intention of this legislative provision being to implement a brake whilst the council plans an accelerated change of direction to restore its finances.
 
"It appears that the resource requested by Slough through the capitalisation directive is insufficient to balance the books. As for any council, whilst the CFO has a vitally important role to highlight the position, 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.