Bracknell Forest Council could expect a budget gap of nearly £20m across the next three years.
Due to the impacts of the Fairer Funding Review 2.0, as well as ‘many years of chronic underfunding’ experienced by councils, officers have cautioned that the local authority could encounter a £18.75m deficit.
The council has highlighted the importance of handling its finances ‘prudently and sensibly’, warning that budgets for service costs will require a reduction of at least 10% over the following three years.
Among the reasons for its financial strain, the council has listed inflation, as well as high demand in sectors such as special educational needs and disabilities (SEND) and social care, alongside other essential services.
The council’s cabinet met on Tuesday to discuss its spendings, and in a statement that day, confirmed that ‘difficult decisions’ are necessary to ensure service delivery and budgets remain stable.
Council leader Cllr Mary Temperton said: ‘The Fair Funding review disproportionately cuts money in the years ahead to areas like Bracknell Forest, which are seen as ‘well off’.
‘We have written to government ministers to express how the Fair Funding Review 2.0 isn’t fair, and we will be left to shoulder a large funding gap while struggling to pay for increasingly costly services - services that our residents need and rely on.’
She added: ‘Regardless of how well we manage our budget, it is impossible to balance an £18.75m funding gap without making some difficult and tough decisions in the future.’