Councillors vote against 'budget of reform'

The proposed budget of a financially-troubled local authority is to be reconsidered after councillors voted against it.

Slough Borough Council was declared effectively bankruptcy in 2021 and has been granted Exceptional Financial Support (EFS) from the government every year since 2018.

The Conservative administration said its 2026-27 financial plan was a "budget of reform", helping the authority "stand on its own two feet".

But opposition councillors raised concerns that proposed savings could not be delivered.

The council's budget papers set out that council tax will be increased by the national cap figure of 4.99% for the next financial year.

It said that by 2028-29, Slough would need "no further" EFS from the Government – a type of borrowing to help local authorities fund day-to-day spending.

The council was declared effectively bankruptcy in 2021, with £760m of borrowed debt. External commissioners were brought in to improve standards and repair its financial situation.

For 2026-27, the council plans to borrow £42.9m of EFS and £22.4m in 2027-28.

The council's lead member for finance, Puja Bedi, said the budget showed the council would "not return to the mistakes of the past."

"We are rebuilding reserves, we are modernising services, we are investing in infrastructure, we are protecting children and vulnerable adults, and we are doing so whilst keeping the pressure off taxpayers and restoring this council's independence from exceptional financial support.

She said the budget includes a "prudent financial buffer against financial shocks".

The budget report includes savings of £15.45m for 2026-27, expected to grow to £37m by 2028-29.

But a £15.5m overspend for the current financial year is also included, with the savings for 2026-27 'likely to be depleted by this', the report added.

Opposition councillors questioned the budget and raised doubts that the savings over the medium term will be delivered.

Labour's Pavitar Kaur Mann said: "Listening to that presentation, you would think we were living in a sunny uplift utopia of Slough.

"If anything, it's quite clear that that presentation by the [Conservative] administration just shows that they're living in cloud cuckooland and how far removed they are from the reality facing our local residents."

She said this was not a budget to celebrate but rather a "budget disaster".

Councillors voted against the 2026-27 budget and the financial strategy for the medium term – with 16 votes for, 19 against and two abstentions.

The meeting was adjourned until Thursday for a further meeting to reconsider the financial plans.