Windsor Castle Faces Major Council Tax Increase Amid £8.8m Deficit
- The Royal Borough of Windsor and Maidenhead is seeking permission to raise council tax beyond the usual limit due to an £8.8 million budget deficit.
- Local authority tax increases in England are restricted unless there is a public referendum, with current limits being 2.99% plus an additional 2% for social care funding.
- The financial situation highlights a broader crisis in local government, as many councils fear the necessity of requesting Exceptional Financial Support.
The financial crisis facing local authorities in the United Kingdom is particularly evident in the Royal Borough of Windsor and Maidenhead, where significant budget shortfalls are forcing the council to consider raising council taxes. The local council is grappling with an £8.8 million deficit, prompting it to seek government permission for tax increases beyond the conventional limits imposed on such measures. Currently, councils can only increase taxes by 2.99%, with an additional 2% permitted for social care, necessitating a public referendum for higher hikes. The severe financial challenges illustrated by the council’s situation are not isolated. A national survey has revealed that one in four councils is contemplating the need for Exceptional Financial Support in the coming two years. Moreover, the council’s Financial Resilience Review indicates that it is on the brink of bankruptcy, mirroring a broader trend among local authorities in England. Since 2018, several councils have issued Section 114 notices, effectively declaring financial failure. Government officials are considering lifting or removing the council tax cap entirely to provide a solution to the local funding crisis. This move is aimed at alleviating pressure on councils without requiring an influx of additional funding from the Treasury. The Deputy Prime Minister acknowledged these challenges, emphasizing the necessity for long-term planning and support for local governments. Overall, the current financial landscape shows that many councils, including those managing royal estates, are under significant strain, necessitating changes in local taxation policy to avert a deepening crisis.