Council tax increase warning as more cuts to come

A council has warned it will look to increase its council tax above the statutory cap as it needs to set a balanced budget next year.

The Royal Borough of Windsor and Maidenhead (RBWM) was granted £103 million in exceptional financial support from the government for the current year's budget which included a 9% council tax increase.

The warning comes as the council's cabinet committee of leading councillors is set to approve its budget-setting process.

A report to council leaders said the council had already begun "informal" talks with the government.

The council is already warning it will need another package of support including "an increase to council tax above the statutory cap", according to the Local Democracy Reporting Service.

In a report council leaders said this was because of cuts and freezes which have left the council £30 million a year short.

Next year's budget won't have to be approved until March 2026.

The report said: "The council's £30m a year structural deficit cannot be closed entirely through transformation, savings and increased income."

Council departments will be asked to start coming up with proposals for cuts, savings and new ways to make money in June.

But council leaders are already being warned that the £30 million a year shortfall is "too large to be balanced entirely by local decisions".

The cabinet report said: "RBWM is expecting to deliver nearly £6 million of savings during the 2025-2026 financial year.

It added: "Closing the council's structural budget gap of £30m would require the authority to deliver five times that amount of savings within its budget – this is not achievable."

These proposals will be presented to council leaders and bosses in September.

The authority said it has already begun "informal" discussions with the government and could soon make a formal request.

This would include asking for a council tax increase above the 4.99 per cent cap and a capitalisation direction which is effectively a loan it will have to pay back by selling off property.

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