Financial crisis and recovery
This question is one of a selection of themes that were covered by the State of the Borough debate or were sent in by attendees.
Question: The council went to major financial crisis in 2021, what happened to cause the crisis and what action has been taken to manage the debt and improve the council?
Slough Borough Council is changing to improve how we work and deliver services. The council’s current improvement and recovery began in late 2021 when the Government sent commissioners in to oversee the management of the council. The Government intervention began after it was found the council had failed to meet its Best Value Duty and was under performing in key areas. Councils have a Best Value Duty to continuously improve through a combination of economy, efficiency, and effectiveness.
There have been several reports and reviews carried out to examine the nature and causes of the financial problems faced by Slough Council. The council built up high levels of debt, which carries interest and debt repayments. The debt reduces resources available for services and changes have to be made to regain financial sustainability. As part of efforts to improve and manage the finances, the council has sold assets to raise funds. To make lasting stabilise the council, all areas of the organisation are being reviewed and changed to make sure the funds available are used as effectively as possible. In 2025, the backlog of annual accounts has been resolved and these will be subject to a full audit by the external auditors, Grant Thornton. This is a pivotal point in the recovery, the council can now move away from working on what went wrong and put more focus on resolving the situation.
More information about the change underway and the commissioners’ role at the council is available on our website in the council improvements section.
Examples of reports: