Our financial situation

Councils across the country continue to face difficult financial situations.

Some have effectively gone bankrupt, and the number close to that state, continues to go up.  

For 2025/26 budget we’ll again have to make tough choices on changes to services to make the savings we need to stay financially responsible. 

Our budget for 2025/26

Our budget for the new financial year was agreed in February by councillors.

• You can read the budget papers as part of the meeting minutes
• Watch the budget council meeting where it was discussed

The council share of Council Tax will increase by 4.99 per cent (including a two per cent increase specifically for adult social). 

This is the standard increase expected by the government and is the same as most councils that are not in immediate financial crisis and have had to increase by significantly more.

This increase means Council Tax for the average Band D property (excluding fire service precept, police precept and average parish council precept) will be £1,931.04 (an increase of £7.65 per month on last year).

The council’s budget setting highlights how little it receives from the Government compared with other authorities:

• Wokingham Borough has the lowest funding level in Berkshire
• Wokingham Borough receives the lowest settlement funding assessment (the annual Government grant to pay for services) per person of all unitary authorities in the country

This leaves Council Taxpayers in Wokingham Borough having to fund a higher percentage of its services directly than other councils.

What’s impacting our finances

Our priority will be helping the most vulnerable, which is why we have to keep making these difficult decisions.

Financial difficulties for many councils

Councils across the country are facing financial difficulties. Some have effectively gone bankrupt, and the number close to being bankrupt, is increasing.

We are not facing bankruptcy 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.

Inflation

The rate of inflation has fallen but that is after a period of high rates, meaning costs have gone up significantly and are not coming down. 

High inflation caused real cost increases to the council of about £10.8million last year.

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, and 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.

2025/26 budget – key dates

• October 2024 to December 2024 – Overview and scrutiny committee review draft budget for each directorate, including savings, growth and special items
• December 2024 - Local Government Funding Settlement agreed, incorporated into models
• January 2025 – Council Tax base setting, confirming the number of properties and expected income to factor into budget
• January 2025 – Chief Finance Officer’s report to Executive
• February 2025 – Executive and Council are presented with budget for agreement