SLOUGH Borough Council is searching for additional savings amid fears the government could cut funding to all local authorities.

After an embarrassing U-turn on the 45p tax rate, which would have saved the wealthiest thousands of pounds in income tax, Chancellor of the Exchequer Kwasi Kwarteng announced public services must find further cuts of up to £18bn a year.

Part of this could impact funding to local authorities across the country, which is already low due to austerity and has forced councils to make savings or invest in property just to balance their books.

The Minister of State for the Department for Levelling Up, Housing, and Communities Paul Scully said in an interview with the Local Government Chronicle that there is “undoubtedly” fat to be trimmed from local government.

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He said: “I know that is a moral dilemma, but I think there is fat to be trimmed in all areas. It’s a case of moving things around a bit.

“There are a number of councils who have a Covid overspend.

“We’ve given councils an extra £2.7bn through the spending review and national insurance [rise which councils would have had to pay will be scrapped] as well. It’s not easy. But there are things we’re doing.”

Slough Borough Council leader James Swindlehurst (Lab: Cippenham Green) said they and most local authorities are anticipating a “less than favourable” settlement from the government next year.

This means the council is already searching for additional savings it could make next year and to see if the already-identified savings could be implemented more quickly if less funding is forthcoming.

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Slough is already having to make about £20m savings a year until 2029 and sell up to £600m-worth of its assets to reduce its £760m borrowing debt and bridge its £479m blackhole after it declared bankruptcy in July 2021.

While the government is scrapping the rise in national insurance, which would have eased the burden on the council’s budget, it will be swallowed up by rising interest rates that will have a knock-on impact on the servicing costs on Slough’s borrowing, Cllr Swindlehurst said.

He added: “The situation will undoubtedly change further between now and our budget-setting council meeting for next year – by the time that is held in late February/early March.

“The council will spend the period until then trying to be as well-prepared as possible for what is likely to be a less generous funding envelope for local councils in the 2023/24 year and the years beyond.”