The future of Basingstoke's Odeon cinema is uncertain after its owner effectively declared itself bankrupt.

Slough Borough Council owns the cinema at the Leisure Park, and this morning issued a section 114 notice.

The notice signals the council will stop all non-urgent spending and that it will seek assistance from the government.

It could now sell off its property investment portfolio to raise funds, which includes the Basingstoke cinema, leaving its future uncertain.

Slough Borough Council bought the Odeon cinema for just over £8 million in 2019.

It was part of the council’s strategic acquisitions programme, where money from its budget was invested into properties both in Slough and outside.

The council has been under government review following two damning audit reports in their 2018/19 accounts by external auditors Grant Thornton LLP, earlier this year.

In their highly critical reports, they found the council had insufficient capacity and skills within the finance department, inadequate preparation of financial statements, inadequate general and earmarked revenue reserves, and inadequate governance, monitoring, and controls over outside groups and companies.

Councillor James Swindlehurst, leader of the Labour-led council, said: “The process of repairing council finances continues and our commitment to the provision of essential services remains unchanged: bins will still be collected, potholes still filled, care still provided to our most vulnerable.

“We have had a team forensically scouring our financial statements and processes. To back up the commitment to better financial management, at the May council meeting, I took on the portfolio as part of cabinet and involved all the lead members in discussions to secure our financial future."

Odeon and Basingstoke and Deane Borough Council have been contacted for comment.

What is a section 114 notice?

While local authorities technically cannot declare bankruptcy, this notice to government indicates that the council does not have enough funds to deliver or balance its budget.

This has cemented the council’s ongoing financial crisis it is facing as unresolved.

Slough has become the third local authority to declare a section 114, following the footsteps of Northamptonshire County Council in 2018, and Croydon Council last year.

You can read more here.