Wokingham Borough is not in the same boat as councils that have recently gone insolvent, the council leader has said – after the councillor in charge of finances warned of potential bankruptcy in the future.

Council leader Stephen Conway said Wokingham Borough Council had more money in reserve than other councils that have recently effectively declared bankruptcy. He said this was down to the work of senior council staff.

Councillor Conway said: “Extremely challenging though the situation undoubtedly is, we have good reasons to distinguish ourselves from those councils that have to declare effective insolvency. Our situation is not the same as theirs.

“The council has a much higher level of reserves of all types to tide us over these difficult times than many councils. Our level of net indebtedness is lower than others.”

Councillor Conway’s comments come after Imogen Shepherd-DuBey – the councillor in charge of finances – warned Wokingham Borough Council would face bankruptcy “in the next couple of years” if it didn’t take action to rein in spending.

READ MORE: Wokingham council risks bankruptcy ‘in the next couple of years’

Councils across the country are struggling to make government funding cover rising costs – and a number have recently had to effectively declare bankruptcy.

Councillor Shepherd-DuBey had explained that a raft of cost-cutting measures at Wokingham Borough Council were intended to avoid the same fate.

But councillor Stephen Conway said a good relationship between leading councillors and senior staff meant Wokingham Borough was different than many of those councils that had gone insolvent.

He said: “We have a strong working relationship between senior officers and executive members here in Wokingham based on honesty and mutual respect.

“In most those councils unable to cope, a breakdown in the relationships between senior officers and councillors has been a contributory cause.”

He added: “We will continue to face considerable financial challenges but we should draw comfort and confidence from what we have been able to achieve together.”

At the same meeting on Thursday, October 26, councillor Shepherd DuBey warned that the council faces overspending its budget this financial year – ending in April 2024 – by more than three and a half million pounds.

She said: “Sadly we are forecasted an overspend of £3.6 million but we are still have half a year to go with opportunities to manage this.

“This overspend is largely due to inflation, which is still above predicted levels, and the increase in demand for statutory care services, particularly in care services.”

The council has also begun the process of setting next year’s budget – running April 2024-April 2025. Initial plans suggesting that cost saving measures of up to £3 million could be launched next year are set to be debated by a council scrutiny committee on Monday, October 30.