Authority's 25% council tax hike plan blocked

The government has blocked a Berkshire authority's plan to increase council tax by 25% - but it will be able to hike it by 9% instead.

The Royal Borough of Windsor and Maidenhead (RBWM) applied for permission to increase council tax above the government's normal 4.99% cap and said not getting permission could send it effectively bankrupt.

RBWM leaders said while the decision announced on Monday would make things "more affordable" for residents, the authority's financial situation will not improve over 2025/26.

Deputy prime minister Angela Rayner said she will allow six crisis-hit authorities, including RBWM, to increase council tax above the cap.

The Royal Borough's residents living in a Band D property currently pay about £1,700 a year but in Newbury similar properties cost about £2,300.

In a statement to the Local Democracy Reporting Service (LDRS), Liberal Democrat leaders said of Rayner's decision: "While this will be more affordable for residents, it means that RBWM's financial situation will not improve this year.

"RBWM will still need to spend the equivalent of the originally proposed 25% increase and will now have to fund the difference by further increasing our borrowing.

"The effect of this will be to increase our debt and consequently increase our borrowing cost in the coming year and beyond. This situation is unsustainable," they said.

Previous decisions taken by previous Conservative leaders to cut and freeze council tax have cost the authority about £30m a year, they previously said.

An RBWM spokesperson said the council felt a 25% per cent increase was "necessary" and that it will now have to consider what impact the refusal might have.

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