RBWM financial issues will take 'many years' to resolve, independent board warns

An independent board tasked with helping the Royal Borough’s financial recovery has praised its response so far but said its challenges will take ‘many years’ to resolve.

Last year, the Royal Borough adopted its financial improvement plan and, in December, set up an independent board of experts to support its recovery.

The Financial Improvement and Sustainability Board (FISB), chaired by Gavin Jones CBE, has since met six times and produced a report which went before RBWM cabinet members at a meeting last month.

The report highlighted the council’s numerous financial challenges, including its low levels of council tax, past accounting errors and rising debt.

But it praised the council’s openness and willingness to engage, and a ‘strong start’ made by the adult social care team to addressing its problems.

“The challenges for RBWM are very significant, though and will take many years to resolve,” the report warned.

At a cabinet meeting on Tuesday, September 30, Mr Jones said the local authority is making improvements on its ‘recovery journey’ and said its transformation plan will be ‘key to your future’.

But the Royal Borough’s cabinet member for finance, Councillor Lynne Jones (Ind, Old Windsor) warned ‘transformation alone’ will not be enough to fix its finances.

RBWM previously received Government approval to increase council tax from the 4.99 per cent standard cap to 8.99 per cent for 2025/26.

The council is predicting it will need to raise council tax above the cap again in future to fill its budget gap.

Mr Jones, who is also lead commissioner for Slough Borough Council’s financial recovery, agreed that ‘it’s difficult’ to see how the Royal Borough could avoid another above-cap rise in its recovery plan.

This would need Government approval, and Mr Jones advised: “The more confidence that [the Government] has in you… the stronger position that puts you in.”

In February this year, the Royal Borough also received permission from the Government for £103million of borrowing through a capitalisation direction – otherwise known as Exceptional Financial Support (EFS).

Mr Jones said: “It’s important that you use an element of that funding to help fuel your transformation plan and not just simply use it for balancing your budget.”

But Councillor Julian Sharpe (Con, Ascot and Sunninghill) raised concerns over whether the council will be able to pay back its EFS loan.

Mr Jones said a mindset where the council continues to rely on EFS from the Government is the ‘wrong mindset’.

Mr Jones said: “There is no silver bullet. Additional government support is effectively a loan that you have to pay off over a period of time.

“All of the councils I work with that find themselves in a similar position have to quite radically rethink how they operate, how they can reduce their operating costs.”

Cllr Jones said: “We did inherit a very challenging situation. Given that challenge …is the pace of progress what you would expect to see?”

Mr Jones agreed councillors are trying to recover ‘a very damaged council’ but he added that the Royal Borough has got ‘the balance right so far’.

Mr Jones said: “I think we’ll all probably say it’s never enough, is it? Because we want to be able to recover as quickly as possible.

“I think we’ve been very impressed by the [council’s] ownership and willingness to implement.

He argued the next 12 months will be ‘particularly important’.

Mr Jones added: “The needs of your residents tend to be quite immediate as well. It can’t all be about long-term recovery because there are ‘here and now’ issues that you need to address.

“But by the same token, you can’t ignore the broader strategic piece.”