The spending plans are proposed in the context of increased demands for services being felt by councils across the country.
This follows government approving an 8.99% increase to borough council tax, to help address the unsustainable low levels - due to historic decisions to cut council tax year after year, over a sustained period from 2010.
While this will mean an annual increase of up to £119 for the council element of bills for an average band D property – the equivalent of £2.30 a week - borough bills will still be the lowest of all other Berkshire authorities.
Additional funding has been built into the budget, to provide support for the borough’s most vulnerable residents - protecting them from the additional council tax increase.
Alongside the Royal Borough having significantly lower rates of council tax compared with all Berkshire authorities and other councils in the region, it also receives the lowest level of government funding per head of population compared to other similar authorities.
The council’s request to government for £103m of exceptional financial support is included in the budget, reflecting the level of support needed to make the council sustainable and rectify £30m of historical accountancy errors.
If the council is unable to secure the level of support required from government, the issuing of a statutory Section 114 notice – which means the council is effectively bankrupt - is certain.
To help rectify historic budget issues, rebuild capacity in essential front-line services, and respond to increases in demand-led pressures in children’s and adult social care, and housing services - the budget includes increased spending on:
- Adult social care: Additional funding of £9.4m to meet the needs of the services and retain permanent staff now the service is back in-house.
- Children’s services: to meet rising demand and costs of care placements – an additional amount of £9.8m will be invested.
- Housing and temporary accommodation: an additional £1.8m funding to meet rising demand and costs.
- Neighbourhood Services: reinstating £3.8m of maintenance budgets for trees, street lighting, lampposts, play areas and road signs.
The council’s Deputy Leader and Cabinet Member for Finance, Cllr Lynne Jones said: “This budget reflects the difficult decisions needed to ensure that we can balance the budget and start putting back money into the services that matter to our residents.
“Despite the significant action we’ve taken to grip the financial situation we inherited, the borough’s unsustainable low levels of both council tax income and government funding compared to other authorities, combined with high levels of debt, means we have no choice but to formally ask for significant government support.
“Without which we cannot replace services that were historically stripped out – including maintaining our streets and supporting more of our most vulnerable residents.”
Following the Cabinet meeting the budget will be put to Full Council on 5 March 2025.