Council tax warning as bills could rise by up to 25% to prevent bankruptcies
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A local council has warned that it would need to raise its council tax bills by up to 25% to prevent bankruptcy. The Royal Borough of Windsor and Maidenhead (RBWM) have proposed a 25% hike to its council tax bills as part of its new budget plans for 2025-26. This is over 20% more than the 5% they can legally inrease it without a referendum. This is a rise of 3% plus 1.99% if the council provides adult social care. However, councils are able to request higher hikes in exceptional circumstances.
The local authority - which is run by Liberal Democrat and independent councillors - said the bill would need to increase "significantly" to help cover its monthly costs. Councillors on RBWM's corporate overview and scrutiny panel will discuss the issue next Monday. Council tax is a bill you pay to your local council and the cost is set by your council and goes towards funding local services such as police and fire services, libraries and educational projects and bill collections.
The draft budget said: "Without a significant council tax increase above the capped level, aligned more closely with the borough's neighbouring areas, the council is unable to reach financial sustainability,". RBWM council is reportedly more than £230million in debt and says it spends £18.6million a year on interest and repayments. According to a report from the Chartered INstitutr of Public Finance and Accountancy (CIPFA) published last year, RBWM was classed as being 'almost effectively bankrupt" and that declaring bankruptcy through a section 114 notice was a "certainty" without "tough decisions".
