Our financial situation

Financial difficulties for many councils

Councils across the country are facing financial difficulties.

Some have effectively gone bankrupt, and the number close to that state, is increasing. 

Wokingham Borough is not facing this at this stage but it is important that residents understand the true picture. For us, the problems are caused by three key factors.

Low government funding

We receive about £30million a year less from the government than the average local authority – that works out at about £400 less per household each year.

This is due to the formula the government uses to slice up the overall funding it allocates to local authorities.

These formulas do not reflect real local needs because they do not factor in vital issues such as the number and complexity of children with Special Educational Needs.

High inflation

Inflation has been high for some time now.

The rate of price increases has fallen in recent months, high inflation has caused real cost increases to the council of about £10.8million this year.

The inflation rate is expected to come down, but costs will not reduce and so this is an ongoing impact to the borough.

Increasing needs in the community

The problems caused by inflation are made more difficult because more people in the borough have care needs that the council must meet.

These include children with Special Educational Needs, children in care, adults with learning difficulties or physical disabilities.

The needs residents have are also becoming more complex. The additional cost of providing these services this year is about £9.7million.