Government funding reform ‘a kick in the teeth’ for RBWM

Government proposals to reform council funding have been labelled ‘a kick in the teeth’ by the Royal Borough’s cabinet member for finance.

The Labour Government launched its Fair Funding Review 2.0 earlier this year with the aim of directing more funding to local authorities in deprived areas across the country.

The approach looks to take into account the different costs and needs faced by local authorities and the ability of individual councils to raise council tax.

Deputy leader of Windsor and Maidenhead council, councillor Lynne Jones, raised concerns about what the Government’s Fair Funding Review means for the Royal Borough during a cabinet meeting on Tuesday, November 25.

She said: “Our council tax is extremely low. However, we are experiencing the same increase in service demand pressures as other areas.

“We are being forced into a situation where the only viable option is to increase council tax to bring it more in line with other councils nationally.

“In real terms, we are receiving £35million less annually than central Government assumed when calculating our funding need. It feels like a kick in the teeth when we have done everything we can to resolve our financial situation.”

The Royal Borough received approval from the Government to increase council tax by 8.99 per cent in 2025/26 – above the 4.99 per cent standard cap.

If council tax needs to be raised above the cap again, the local authority can either appeal to the Government or it will need to hold a local referendum to get residents’ views on this issue.

Cllr Mark Wilson (Lib Dem, Eton and Castle) backed Cllr Jones and said that the Government’s fair funding model assumes deprivation is the main reason as to why councils need support.

Cllr Wilson said: “What deprivation doesn’t pick up is the effect of elderly people moving into the borough late in life into private care homes.

“This is inversely proportionate to deprivation; people are attracted to the borough, and it adds to our adult social care bill.”

But a Ministry of Housing, Communities and Local Government (MHCLG) spokesperson said: “We have made £69 billion available for council finance, including £129.6 million for Windsor and Maidenhead, and are making sure that cash going to councils is shared out in a fairer way that reflects their needs.

“We will fix the outdated and unfair funding system we inherited through the upcoming multi-year Settlement so that councils can deliver better public services.”

The meeting also saw cabinet members discuss the council’s latest budget monitoring report which detailed the financial pressures facing the local authority in 2025/26.

This included a forecast overspend in its revenue budget, used to fund day-to-day services, of £4.20million. But the report said this can all be contained within the council’s contingency budget, a pot of money set aside to cover any unexpected costs.

The council also has a projected £5million overspend for the Dedicated School Grant (DSG) and a £2.17million forecast overspend for children services.