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Tony Hunter, chairman of Slough Children’s First (SCF) – which is wholly owned by Slough Borough Council – pledged at an audit meeting the company will repay its debt.
SCF was given a working capital loan of £5m and was also given £1.5m to cover and mitigate two in-year pressures and was also given an additional £4.6m as part of its contract with the council.
SCF was originally an independent trust due to its ‘inadequate’ OFSTED rating but later changed its name when it was taken over by the local authority in 2021.
It historically has been struggling to balance its budget and has asked multiple times for the council to cover its deficits due to the huge rise in children needing help.
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Speaking at the meeting on Tuesday, March 14, Cllr Safdar Ali (Lab: Central) said the loan is repayable at the end of the contract term and the council needs to agree further funding. He questioned how the local authority will implement this.
He said: “This is exactly what happened previously where the council lost more than £4.5m.”
Cllr Paul Kelly (Con: Haymill & Lynch Hill) also asked how likely the capital loan will be repaid and what the likelihood is of SCF asking for more money.
Mr Hunter replied: “We are demonstrating everything we can that we can hold to budget and spending the money on the right things to bring the numbers of children in care down, which is the main cost pressure.
“I really can’t say. I don’t want to say things that are fingers in the air but other than to say we are well aware of that capital loan and the commitment to pay that back.”
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The council’s departing finance chief Steven Mair said they are assuming the loan will be repaid in approximately five years.
SCF is still working on its business plan to find ways for the company to work within its budget while also providing essential care to children. Parts of the plan are being rewritten following feedback from a consultancy firm.
Mr Hunter said setting the business plan has been “torturous” but needs to get it “right”. He, however, denied claims improvement works have been a “talking shop,” adding they are working to align services and partnerships under financial challenges SCF and the council are facing.
He expects that piece of work to be completed in the summertime.
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