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UK: Labour-run Slough council declares bankruptcy after failed commercial deals


UK: Labour-run Slough council declares bankruptcy after failed commercial deals
Labour Party-run Slough borough council has become the third English local authority, after Northamptonshire and Croydon, to declare itself bankrupt.
It has issued a Section 114 notice under the 1988 Local Government Finance Act, required if councils do not have sufficient financial resources to function, and announced an immediate “pausing [of] non-essential spending.”
Slough Town Hall (credit: Wikimedia Commons)
The notice followed discovery of a projected £96 million deficit in the council’s budget, and revelations that its reserves had fallen from £7.5 million to £500,000. If not addressed, the budget deficit could rise to an estimated £150 million by 2024. ....

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Slough council leader grilled by opposition over damning audit reports


Slough council leader grilled by opposition over damning audit reports
James Bagley. Local Democracy Reporter
03:12PM, Monday 24 May 2021
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Tory councillor Wayne Strutton (left) and council leader James Swindlehurst
Slough s council leader faced a grilling from the opposition about the two damning audit reports at an extraordinary meeting.
Councillor James Swindlehurst (Lab, Cippenham Green), leader, was faced with tough questions from the opposing Conservatives and Independents following the highly critical papers of the local authority’s financial governance.
In the external auditor’s reports, Grant Thornton UK LLP found:
insufficient capacity and skills within the finance department
inadequate preparation of financial statements ....

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Slough leader grilled by opposition over damning audit reports


at an extraordinary meeting.
Councillor James Swindlehurst (Lab: Cippenham Green), leader, was faced with tough questions from the opposing Conservatives and Independents following the highly critical papers of the local authority’s financial governance.
In the external auditor’s reports, Grant Thornton UK LLP found:
insufficient capacity and skills within the finance department
inadequate preparation of financial statements
inadequate general and earmarked revenue reserves
inadequate governance, monitoring and controls over the council’s outside groups and companies
At an extraordinary audit and corporate governance committee on Tuesday, May 18, the leader of the Conservatives, councillor Wayne Strutton (Haymill and Lynch Hill), heavily criticised the leader and asked him when he was made aware of the issues highlighted in the reports. ....

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