Windsor & Maidenhead residents face 25% council tax hike

Residents in Windsor & Maidenhead are facing a 25 per cent council tax hike as the town hall struggles to avoid going bust.

The local authority has asked the government for permission to increase the levy by an extra fifth, alongside the standard 4.99 per cent limit.

As well as the eye-watering rise, councillors want a £60million loan to prop up the finances.

Otherwise they said it is 'almost inevitable' that a Section 114 notice will be issued - the equivalent of going bankrupt.

There are fears a rash of other requests will surface shortly, as today is the deadline for councils to request Exceptional Financial Support, including tax increases above the ceiling.

The Liberal Democrats and independents who run Windsor & Maidenhead have pointed the finger at previous Tory administration for the crisis. 

They blame an 'historic decisions to cut council tax year after year over a sustained period from 2010, combined with high levels of debt'. 

However, they have been accused of making problems worse with 'reckless overspending' since taking over last year. 

The council said its application 'reflects the level of support needed to make the council sustainable and rectify £30million of historical accountancy errors'. 

'If the council is unable to secure the level of support required from government, the issuing of a statutory Section 114 notice – which means the council is effectively bankrupt - is almost inevitable,' it said.

The council's Lib Dem leader Simon Werner said: 'While difficult decisions have already been made over the last 18 months, it's clear that we will need to continue to make tough calls - to fix the mess we inherited and prepare a budget for 2025-26 that balances.

'The horror show we have inherited means that the council will need additional support from government to set a balanced budget.'

A Band D property currently pays about £1,700 a year in council tax.

That could increase by around £320 next year, although it would still be lower than some other nearby boroughs. The borough includes the King's residence Windsor Castle, which is Band H.

The government is not due to make final decisions on emergency support until February.

A Local Government Association survey earlier this year found that a quarter of councils believed they were likely to apply for Exceptional Financial Support in 2025-26 and 2026-27.

A record 18 asked for bailouts this year. Some, such as Woking, have been caught out after borrowing to invest in property assets, that have since decreased in value - while servicing costs for the debt have risen.

However, others have been struggling to deal with pressures on spending from inflation and rising demand in areas such as social care and homelessness.