03/02/2025
Maidenhead Town Hall.
Council tax in RBWM is set to rise by nine per cent after government refused the local authority’s plea for a 25 per cent increase.
Council tax in RBWM is set to rise by just under nine per cent after the Government refused the local authority’s plea for a 25 per cent increase.
A statement from Windsor and Maidenhead Liberal Democrats said the decision to allow an 8.99 per cent rise ‘kicks the can down the road’ and would ‘not improve’ the council’s financial position.
An RBWM spokesperson said, while ‘significantly below what we requested’, the Government’s move recognised council tax was a pressing issue for its financial stability.
The Royal Borough had asked the Government for permission to hike council tax by 24.99 per cent to help repair its ailing balance sheet which it says puts it at risk of effective bankruptcy.
In 2023 the council revealed it was facing multi-million pound overspends and was saddled with a more than £200million debt pile.
If a council wants to raise council tax by more than 5 per cent it must be approved by Ministry of Housing, Communities and Local Government – headed up by Deputy PM Angela Rayner.
As a more than £69billion package for UK councils was unveiled today, Ms Rayner said Labour was taking a ‘tougher approach’ to council tax rises than previous governments.
“These [council tax rises] are difficult decisions that government has not taken lightly,” Ms Rayner said.
“We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress – but we have been clear this must be balanced with the interests of taxpayers.”
Six councils have been approved above-cap rises, with Bradford Council being permitted the largest rise of five per cent
The Royal Borough of Windsor and Maidenhead and Newham Council were permitted a four per cent above-cap rise.
The statement from Windsor and Maidenhead Liberal Democrats said a budget shortfall caused by Labour’s refusal to sanction its 25 per cent request meant the council would have to increase borrowing to balance the books.
“The effect of this [decision today] will be to increase our debt and consequently increase our borrowing cost in the coming year and beyond,” it said.
The statement added: “This decision from Labour defers the full resolution of the council's financial situation to the future.
“This will necessitate further above-cap increases in future years, increases debt and creates a massive a financial burden on residents in the future.”
A council spokesperson said: “Recognising that only by increasing council tax and reducing the reliance on borrowing will the council become financially sustainable - our ask, to raise council tax by 20 per cent above the current cap of 4.99 per cent, was on the scale of increase necessary to set our budget following years of cuts to council tax from 2010.
“Although 8.99 per cent is significantly below what we requested, we have been clear to the Government that we’ll need to increase council tax over the next few years unless there is a significant increase in government funding, it is one of only six increases in the country to be agreed.
“This demonstrates a recognition that our low levels of council tax, and that they are so out of kilter with other areas, is a significant issue for the council and our financial sustainability.”