Council asks for £30m emergency loan to stay afloat

A council has asked the government for a £30m emergency loan to help it stay afloat.

It is the second year running West Berkshire Council has applied for exceptional financial support to balance its books.

Council leader Jeff Brooks said: "Even if council tax rises in line with the limits set by government, this still leaves us with much less money to spend on essential local services - that isn't fair on our residents and it isn't sustainable in the long-term."

The government has said its financial settlement for the next three years is "fairer" and "targeting the places and services that need it most".

Council tax in West Berkshire will still need to rise by 4.99% - including 2% ring-fenced for adult social care.

The Liberal Democrat-run authority is also planning to make a small number of staff redundant to reduce its headcount.

Last year, the council was granted £16m to replenish dwindling reserves and balance its books for 2025/26.

The council said the money was needed to help it provide the services people expect like adult social care, children's' services and bin collections - but also to invest in some special projects.

They include repurposing a former care home in Hungerford into emergency accommodation, a new play park at Shaw House and three more pop-up libraries.#

Many council leaders in the South have said they feel they are losing out under the government's new funding settlement, which gives grant levels for the next three years.

The leader of Hampshire County Council, Conservative Nick Adams-King said there was a "political" element to the redistribution of funding to some northern areas that are "labour supporting".

West Berkshire is not the only authority that has needed to ask for an emergency loan.

Isle of Wight and Bournemouth, Christchurch and Poole (BCP) Council in Dorset have also applied for financial support to help them balance budgets for the next financial year.

BCP wants to be able to raise council tax 7.5% to cover interest on its SEND debt.

Another Berkshire unitary council, the Royal Borough of Windsor and Maidenhead, was granted £103m exceptional support for 2025/26 and permitted to raise council tax by 8.99%.

The extra rise was permitted because of the borough's historically low level of council tax.

Councils will find out in the next few weeks whether their requests have been granted by local government minister Alison McGovern.