Slough Borough Council criticised over 'very slow' recovery

The government-appointed commissioners, who were brought in December 2021 to oversee the council’s recovery for a period of three years, have said the local authority is ‘many months behind where it should be now’ due to some personnel resisting the required changes.

Lead commissioner Max Caller and finance commissioner Margaret Lee, who have both now left their roles, submitted their second report on December 22.

SBC effectively declared bankruptcy in 2021 after it amassed a £760m borrowing bill (reduced to £503m) and a £357m blackhole. It has increased council tax by 9.99 per cent, which is five per cent above the legal limit, and is selling up to £600m of its assets.

(Left) Finance commissioner Margaret Lee and lead commissioner Max Caller

Within the report, the commissioners highlighted that the council ‘has yet to make progress in promoting and embedding the cultural change required for compliance and success’.

This report identified that there is a ‘real sense’ among many leadership roles do not see leading and modelling corporate improvement as their ‘overriding responsibility’ but only something ‘they have to do’ to be allowed to do business as it is usually done.

It also stated: “It will take a considerable change in both attitude and performance to demonstrate that embedded progress is being made.

“Too many individuals in leadership roles do not accept that this means that individually and collectively, they need to behave, act, and encourage the organisation to face up to the required changes and that that this needs to be done at a much faster pace than heretofore.”

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In their conclusion, the commissioners wrote: “At this stage, it is impossible for commissioners to conclude that SBC will be a viable unitary authority at the end of the current or a potentially extended Direction period.

“Commissioners and ministers will need to consider alternative scenarios.”

The council has so far sold about £200m worth of assets and is aiming to sell another £200m by next April.

The former Akzo Nobel site was originally earmarked for up 1,000 homes (Image: Slough Borough Council)

The biggest asset sold was the former Akzo Nobel site, which SBC bought for £38m to be turned into commercial and housing, for over £100m to a data centre company.

However, the commissioners fear SBC’s other assets ‘are likely to be less attractive’ and warned they could be ‘more susceptible to reducing prices’.

Despite the very large former Akzo Nobel site sale, this ‘is not sufficient in itself to give confidence for the future,’ the commissioners wrote.

They also heavily criticised SBC’s purchase of the former Akzo Nobel site for not fully knowing the financial risk of taking on such a large project nor was there any information on how it would be funded.

The council was intending to commit £250m to the scheme. The commissioners wrote if the council committed that money, its borrowing debt would have increased to over £1bn and ‘there would be no way to financial stability’.

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SBC plans to deliver £22.4m in savings this year and a further £12.9m in annual savings for the next five years. Commissioners have said this is still ‘challenging’ and were concerned the local authority is ‘very susceptible’ to further financial shocks.

SBC leader James Swindlehurst (Lab: Cippenham Green) said they “fully acknowledge” that the council has a long way to go on its recovery journey and have “worked hard” to further drive improvement, develop a programme of organisational change, and generate significant receipts from asset sales.

He said: “Our financial position remains challenging. But we are all committed to Slough, our town and its residents and we will now continue to work towards financial recovery, furthering the significant progress which has already been made.

“As a council we are well aware of the journey ahead and are committed to the recovery of the council.”