Why big council tax rises loom in the Royal Borough

As Labour grants the Royal Borough of Windsor and Maidenhead the power to raise council tax beyond the usual cap, BBC Berkshire looks at why the area faces a financial crunch and what might happen next.

In recent years the vast majority of local authorities in England have put their council tax bills up by the maximum amount allowed - 5%.

It has almost become a fact of life for people, including for those who live in the Royal Borough of Windsor and Maidenhead.

Now, while no-one looks forward to a council tax bill landing on their doormat or in their inbox, people there are luckier than most.

If you live in that part of the world you pay less council tax than almost everyone else. Only those in a handful of London boroughs pay less.

That has left the local authority with a big financial headache though, and now the government appears to be stepping in to help.

Residents have already seen their bills go up by just under 9% this year and now they are being told their bills will rise by more than the usual 5% again for at least the next two years.

So why does the Royal Borough merit special treatment you may ask?

It is one of just six local authorities to be given permission to break the 5% cap in both 2026/27 and 2027/28.

Well, for years the previously Conservative-led council prided itself on the fact its council tax bills were some of the lowest around, saying there was no need to charge people more than absolutely necessary.

It argued that by running such a lean and efficient authority, it could afford to keep bills low without harming services.

In recent years though the spiralling cost of providing services for adults needing social care alongside a steep rise in the costs associated with looking after vulnerable children have put the borough's budgets under pressure like never before.

Throw in the Covid pandemic and the shock to the world's economy when the Russians invaded Ukraine and the Royal Borough has found itself talking at length to its accountants about the very real possibility of bankruptcy.

Live in Windsor and you can consider yourself more fortunate than most as you will pay about £1,700 a year in council tax for a Band D property. In Newbury you will be charged nearly £600 more a year.

With council tax receipts making up a major chunk of any council's budget, this has left the Royal Borough desperately short of funds.

It has already raised this year's council tax bills by 8.99% and, while it has been given permission to raise them than by more than the usual 5% again for the next two years, we don't know just how much more the council will want to charge.

Two things we do know though.

One, the Royal Borough says that any extra cash it does bring in through higher bills will not be enough to balance out the estimated £29m funding shortfall it currently faces.

Two, the borough also says that some of the extra money it does manage to bring in over the next two years is likely to end up going to other councils in poorer areas of the country anyway.

As for exactly how much more council tax people in Windsor and Maidenhead will have to cough up in the next two years, we are unlikely to have an answer to that for a few weeks yet.

Back in January, the council said it wanted to raise people's bills by as much as 25% to help cover its costs.

The government quickly put paid to that with the borough settling on the lower figure of 8.99% instead.

Crystal ball anyone?