West Berkshire Council seeks an extra £160m government funding amid financial strain
Budget papers reveal a significant funding gap and the need for further emergency finance support
West Berkshire Council says it will need an extra £160m from the Government over the next four years to keep its head above water.
And it will be requesting an extra £4m on top of the £16m of emergency funding it already has, plus another £30m for next year’s budget to balance the books.
The council published its budget papers tonight (Wednesday), painting a very grim financial picture.
The 2026/27 revenue budget of £210.9m is set against available funding of £177.9m, generating a funding gap of £33.02m.
The council has even ditched the plans for building its own solar farm at Grazeley from the spending pot next year.
It says it will not make it back on the books until a revised business plan is approved. Costs for that project have doubled from £10m to £20m.
The council has approved the creation of a Finance Improvement Group, with external specialists to monitor the development of savings £15m over the next four years.
The council mostly funds itself from council tax receipts, so more homes means more cash.
Although it has not asked for any dispensation for an increase beyond the permitted maximum of 2.99 per cent plus a two per cent precept for adult social care.
Over the life of the settlement, government funding (inclusive of retained business rates) reduces by £14.1m compared to the 2024/25 baseline.
The financial challenge is set against an in year (2025/26) forecast overspend of £8.5m – £11.5m when considering £3m of emergency finance support (EFS) utilisation.
Over the its newly published medium-term financial strategy, expenditure is forecast to be considerably higher than funding allocated. This has prompted the ask for more EFS to top up the £16m this year.
Consistent with the wider national context, the Council is facing significant cost pressures from adult social care and special needs provision, plus employment and cost-of-living increases.
Last year, 30 councils were in receipt of EFS. This number is expected to rise further next year.
Three of the six Berkshire unitary councils are also in receipt of EFS.
West Berkshire is also doing a deep dive into the council’s own assets to ‘maximise’ their use.
The council has also revealed that a public consultation it launched asking residents for their views on budget plans was responded to by 147 people.
Proposals for all the budget plans, including the bid for EFS go before the council’s executive next Thursday.