All councils are facing severe challenges. Inflation, high interest rates, and increasing demand, especially for Children’s and Adult Services, are putting their finances under unprecedented pressure.

In Wokingham Borough Council's case, our historical underfunding by central government only makes a difficult situation more challenging still.

But our situation is not the same as those councils that have had to declare effective insolvency.

The council has a much higher level of reserves of all types to tide us over than most councils do. We will use them cautiously and prudently, ensuring that plenty is left to cover future challenges.

Another advantage is that our level of net indebtedness is lower than that of other councils. Our investments have generally been local and focused on supporting our retail centres. They have produced a rental income that has helped us to cover the cost of providing vital services.

A major factor in our favour is that leading councillors have a strong working relationship with senior officers. In most of those councils that have been unable to cope, a breakdown in the relationship between senior councillors and officers has been a contributory cause.

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The hard work of our impressive and dedicated officers is what makes Wokingham such a strong council.

The current leadership, furthermore, has been willing to take tough decisions to balance the books. External peer reviewers have praised that willingness and seen it as a hallmark of a council that will have the resilience to get through the current financial crisis.

Last year we eliminated an in-year deficit and ended the year with a small underspend. This year, the challenge is at least as great, if not greater.

But we are determined to rise to that challenge and to produce a sound and balanced budget for the next financial year.