Bracknell Forest Council could still be £2.5 million over budget this year, after a squeeze on spending to rein in its finances.

Rising costs coupled with falling income means councils across Britain are face spending millions more than they had budgeted for – and scrambling for ways to cover costs in the future.

Bracknell Forest Council first announced in September that it could be £4 million over budget when the financial year ends in April 2024. But after council bosses said they would crack down on unnecessary spending, the prediction was later reduced to £3 million.

Now executive director for resources Stuart McKellar has said this has fallen again to between £1.25 and £2.5 million – which he said is still “a significant” overspend. He said this could have a knock-on affect on how the council allocates its spending on services next year.

He said: “It is at this time of the year higher than we would expect. We are still working hard to bring it back in line because that has a knock-on impact onto next year’s budget because we will have to use some reserves to fund the current year’s budget if that doesn’t happen.”

Mr McKellar added that the council faces a funding  gap of £10 million over the next three years – and that’s if it raises council tax by the current maximum of 5 per cent each year.

He said rising inflation and a fall in income would continue to be a problem. He said: “Inflation is a bit lower going into next year’s budget but it’s still high relative to what we’ve seen over the past ten years or so, so that will be a big element of next year’s budget.

“The pressures that we’re seeing in terms of the reductions in income and increases in expenditure will also in most cases impact on next year’s budget.”