West Berkshire Council is set to borrow another £50m next year.
West Berkshire Council plans to borrow an additional £50m next year, increasing total borrowing from £231m in 2024 to £294m by 2026. This amounts to approximately £1,500 for each resident to maintain council projects and services.
A significant portion of this borrowing covers costs for SEND (special educational needs and disabilities) provisions, which total about £17m, and £16m in emergency funding requested from the Government earlier this year.
While most borrowing is directed at capital projects such as infrastructure, it also addresses cash flow issues caused by rising social care costs. Council tax revenues generate around £180m, but this falls short by £20m compared to projected budgets.
Recently, a £6.1m projected overspend was announced, leading to tighter controls on adult social care admissions. Currently, about 1,900 people reside in care homes within the area. Meanwhile, costs in the children's department have surged from £4m three years ago to a projected £9m this year.
Future borrowing projections for 2025 sit at £249.9m, primarily intended to pay off previous expenditures like the £60m on commercial properties, which are now being sold. Planned spending includes a £20m solar farm at Grazeley and £12m for road repairs and upgrades in schools such as improvements to Theale railway station.
Iain Cottingham, the executive portfolio holder for finance, pointed out that compared to other councils borrowing £2,000 to £3,000 per resident, West Berkshire’s borrowing cost averages below four per cent. Cottingham also noted that short-term borrowing comprises no more than 30 per cent of total borrowing.
The deputy 151 officer stated the council is under Exceptional Financial Support, with a budget gap that pressures revenue. Lastly, councillors were informed that the fall of approximately £1m in the value of the commercial property portfolio didn’t impact the general fund, reassuring them that no additional cuts or tax increases would be needed.
Niki Hinman, Local Democracy Reporter
