Reading Borough Council is forecasting a £5.334 million overspend for the year after just three months, blaming rising costs in childrens services and homelessness prevention.
The figures come from the councils Q1 2026/27 performance report (April June) and were presented to the policy committee on 16 September.
One big pressure is home-to-school transport: more children with education, health and care (EHC) plans need it, and the cost of providing that transport has jumped.
Gavin Handford, director of policy, change and customer services, pointed to some Q1 wins, including the opening of the new Central Library in the council offices and higher household recycling and composting rates.
But homelessness is a major worry. Councillor Rob White said about £30 million of council housing spending to boost supply and repair stock has been pushed into future years, and rough sleeping is at an all-time high, with 43 people counted during a single-night survey in November last year.
Matt Yeo, lead councillor for housing, said 44 homelessness preventions were made in August, with the council averaging 25-40 preventions a month.
"We do have good plans to keep our stock well repaired, and we've had some issues, but we've seen significant progress in that, and the planned maintenance and other works coming through, so I feel ok about that.
Councillors approved changes to the budget, including the write-off of £440,982.01 in business rates debt and £29,862.19 in sundry debts.
James Aldridge, Local Democracy Reporter
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