The Community and Corporate Overview and Scrutiny Committee of Wokingham Borough Council met on 6 October 2025 to discuss the Medium Term Financial Plan, and to review the council's reserves. The committee also looked at their work programme and action tracker to consider how they can scrutinise the council's work.

Medium Term Financial Plan 2026-29

The committee was scheduled to consider the strategic overview of the draft Medium Term Financial Plan 2026-29 and scrutinise consultation feedback. The report pack stated that the council, along with other local authorities, faces unprecedented challenges in setting a balanced budget for 2026/27.

The report pack noted that the council's primary source of income, council tax, is capped at 2.99%, while other key lines of income and cost pressures have been negatively affected by external national and international factors. It also noted the potential impact of Fair Funding 2, under which the government is considering the resource allocation to local authorities across the country over the next 3 years. The council estimates that the current proposals will require an additional £21 million cost reductions or additional income (in addition to council tax) over the next 3 years.

The report pack stated that the budget challenge for 2026/27 and beyond sits in the context of a significant level of savings and efficiencies already achieved. It stated that cumulatively this accounts for over 30% of the council's net revenue budget in just the past 6 years and the current 26/27 proposals.

The report pack also included a summary of the budget engagement exercise undertaken by the council, which included an online survey and sessions across the local community including voluntary sector organisations, schools, businesses and town and parish councils. The findings pointed towards a mandate to explore alternative revenue sources and partnership working to minimise the burden on council spending.

The committee was asked to note the unprecedented financial challenges faced nationally by local government and the subsequent impact on Wokingham Borough Council, together with the particular challenges for Wokingham. They were also asked to note the proposed changes to the allocation of funds across local government (Fair Funding 2), which are currently at consultation stage, and are expected to have a significant negative impact on Wokingham's available funds which will require further consideration of future service delivery and efficiency options.

The committee was also asked to note the extent of the revenue funding gap in each of the next 3 years, substantially driven by the potential impact of Fair Funding 2 and the strategic approach set out in Appendix A - Strategic Summary. Finally, they were asked to note the outcomes of the budget survey detailed in Appendix B Budget Engagement Summary 2026-27 and to use the questions in this survey as an aide to proposing potential ways to address the budget gap.

Medium Term Financial Plan Overview 2026-29 - Reserves

The committee was also scheduled to consider the range of reserves held by Wokingham Borough Council and were asked to note the reserves position in the context of setting the Medium-Term Financial Plan for 2026/2027 mindful of the strategic approach.

The report pack stated that financial reserves should be set in the context of the authority's risk register and medium-term plans and should not focus exclusively on short-term considerations. It also stated that balancing the annual budget by drawing on general reserves may be viewed as a legitimate short-term option, but it is not prudent for reserves to be deployed to finance recurrent expenditure.

The report pack detailed the overall position and considerations taken in respect of reserves and how the financial values required are set strategically to balance the level of risk from across the organisation's operations and approach to investment.

The committee were asked to note a reduction in overall reserves from when last reported to Overview and Scrutiny in the region of c£12.5m, driven mainly by the Dedicated Schools Grant (DSG) deficit increasing by c£20.6m. They were also asked to note that excluding the DSG deficit, the positive movement on usable reserves is wholly accounted by the increase in the business rates reserve and therefore all other usable reserves have remained static overall. Finally, they were asked to note the importance to the responsible approach to utilisation of reserves in the context of the upcoming fairer funding settlement.

Work Programme

The committee was scheduled to review and update their work programme. Items listed for future meetings included:

• Transport Network Review (29 October 2025)
• Regulator of Social Housing Inspection (29 October 2025)
• Speed Limit Policy (29 October 2025)
• MTFP – Place and Growth (4 November 2025)
• Burial Capacity (4 November 2025)
• Residential Parking Permits (4 November 2025)
• Emergency Planning Update (4 November 2025)
• Grays Farms Sports Hub (4 November 2025)
• MTFP – Adults Social Care and Children's Services (25 November 2025)
• Economic Development/ Town Centre Strategies (25 November 2025)
• Planning Service Update (25 November 2025)
• MTFP – Corporate Services (16 December 2025)
• MTFP Consolidated Update (21 January 2026)
• Waste Collection & Street Cleaning Contract (21 January 2026 and 2 March 2026)
• Adaptive Street Lighting (21 January 2026)
• LTP Update (2 March 2026)
• Highways and Transport and Innovation (2 March 2026)
• Community Safety Partnership End of Year Report 2025-6 (September 2026)

Action Tracker

The committee was scheduled to review the action tracker to monitor progress on actions agreed at previous meetings. Actions listed included:

• Officers to provide a written update on the EPRS future situation when possible (from 20 January 2025)
• Circulate Forest of Imagination evaluation report when completed (from 28 May 2025)
• California Crossroads – Consider Stage 4 Safety Audit (from 28 May 2025)
• For an update on the survey undertaken on the roundabout next to Nine Mile Ride to be provided (from 8 September 2025)
• An update on plans to alleviate fluvial flooding at Loddon Bridge roundabout to be provided by Councillor Adrian Betteridge (from 8 September 2025)