Alongside a programme of investment in service improvements, the spending plans also aim to also rectify historic budget decisions and respond to changes to the way government allocates funding leaving the Royal Borough as one of the biggest losers nationally and without the financial resilience to meet increasing demand.
Given the scale of the £49m budget gap, despite £6m savings from transforming services, the council will continue to need government support and will look to utilise the permission granted by the government to raise borough council tax by 7.49% from April 2026 - an increase of 2.5% above the standard 4.99% limit before a referendum is required.
While this will mean an annual increase of £106 for the council element of bills for an average band D property – the equivalent of £2 a week - borough bills will still be the lowest of all other Berkshire authorities and well below the national average.
The council’s request to government for £49m of exceptional financial support is included in the budget, reflecting the level of support needed to balance this year’s budget, rectify historical decisions and the loss of funding through the government’s Fair Funding Review.
To respond to increases in demand-led pressures, rectify historic budget issues and re-build capacity into key services - the budget increases spending of £14m on areas including:
- Adult social care: additional funding of £3.35m to support people to remain in their own homes and live a safe and independent life for as long as possible.
- Children’s services: to meet rising demand and costs of care placements – an additional amount of £5.62m will be invested.
- Housing and temporary accommodation: an additional £1.88m funding to meet rising demand and costs and transform housing services.
- Maintenance budget boost: £1.17m aimed at improving borough parks, carparks, council owned buildings and other areas in need of repair.
Plans also address actions within the council’s Financial Improvement and Sustainability Plan, building on the significant action already made in the councils’ improvement journey - to improve governance, control expenditure, reduce cost, prioritise resources, maximise value and better utilise the council’s asset base.
Council Leader, Cllr Simon Werner, said: “We inherited a mess and have transformed the council – our plan is working and showing results - the budget has been stabilised, financial reserves built back, and savings are being delivered.
“Our children’s services are rated good overall with outstanding support to care leavers by Ofsted, and we’ve opened our own children’s home, transformation we have made to adult social care has strong user satisfaction, the number of people in temporary accommodation has gone down 12% since last summer and we abolished the property company and brought those services back in house.
“We are also putting money back into the services residents tell us matter to them - to improve the borough’s playparks and carparks, which historically were left to ruin, and ensure our libraries, family centres and leisure services continue to be delivered.
“This all demonstrates how we are getting things done, through clear leadership in a lean and efficient council with a smaller workforce than other Berkshire authorities.
“While we will need to secure additional support from government alongside making tough decisions, to rectify the financial recklessness of the past - this budget will enable us to continue to get things done.”
The council’s Deputy Leader and Cabinet Member for Finance, Cllr Lynne Jones, said: “By severely reducing our funding government tore apart our medium-term plan for financial recovery and has forced us into a position where there is no choice but to turn to them for significant support.
“However, we are focused on manging what we can control to enable the council to continue to be financially viable and repair the damage from years of underfunding, with our budget that strikes a balance between making savings and investing in the services our residents tell us matter most to them - so we can deliver the services our residents deserve.”
Additional funding has been built into the budget, to provide support for the borough’s most vulnerable residents - protecting them from any additional council tax increase above the standard level.
Draft budget proposals were subject to consultation from 17 December 2025 to 1 February 2026, with the report presented alongside the budget at the Cabinet meeting.
Following the Cabinet meeting, the budget will be put to Council for approval on Tuesday 3 March 2026.