Finance update at Cabinet

A progress report on budget setting for the 2026/27 financial year will go before Cabinet at its meeting on Monday 15 December.

The report shares the work undertaken so far towards delivering budget proposals for 2026/27, and councillors will hear of initial savings ideas for the year ahead, as well as the emerging risks, pressures and investment proposals. However, more work is needed before the council sets its budget in February 2026.

In December, the council will find out what money the Local Government Finance Settlement (the contribution made by central government) will provide for Slough. After that, work on understanding and forecasting spending pressures from temporary accommodation, adult social care, and other council services will be concluded, and further savings proposals brought forward.

The report puts forward savings proposals totalling £12.029m at this stage so that engagement can start with residents. This includes an initiative to increase income by collecting additional business rates of £4.4m.

Further savings proposals to improve the position will be brought forward between now and February. The report recognises that investment will be needed to deliver savings from transformation and contribute to financial sustainability.

The report also recognises ongoing pressures of £25.059m from the current financial year which will need to be reflected in the budget for 2026/27 and which the council is working to reduce. In addition, it outlines the emerging budget pressures and risks for next year, which amount to £11.240m at this stage, although it is expected this figure will reduce as the work continues.

The growing cost of temporary accommodation for homeless households is a significant element of the overall budget pressure, at £15.047m. Work is under way to set out a programme for delivering savings in this area, by reducing the cost of accommodation and preventative work to reduce the number of homeless people needing support.

Cabinet will be asked to agree that urgent steps be taken to progress proposed savings and develop full delivery plans and equality impact assessments, where necessary, for final approval at Cabinet and Council in February.

Councillor Puja Bedi, lead member for finance, children and lifelong learning, said: “This is an important update on the current financial situation and marks a step towards setting our budget for 2026/27, as is our legal requirement to do. There are some savings proposed, some investment opportunities shared and an explanation of some of the pressures.

“We are still working hard to achieve financial stability. While the council is improving, there are more actions to be taken to ensure we find that balance. We are committed to protecting the most vulnerable in our communities and we will continue being ambitious about delivering services and making improvements in the borough, within the budget we have available to us.

“In the new year we will share ways in which people can comment on our plans and these views will be taken into account before the final budget is agreed in February.”

View the papers on the council’s website.