Royal Borough Cabinet agrees council tax rise as part of draft budget

The Royal Borough’s cabinet has agreed its draft budget for the coming financial year, which would see council tax rise as it battles to bring its finances into order.

In addition to a 4.99 per cent council tax bill rise, the 2024/25 draft budget proposes other increases to fees and charges, which cabinet members gave their backing to at a meeting on Wednesday.

The Royal Borough is facing total debts of £200million and a forecast overspend of £7million this year as the cost of service provision continues to rise.

Cabinet member for finance, Councillor Lynne Jones (Old Windsor, OWRA) said the new budget was set amid an economic climate where increasing numbers of councils were encountering financial difficulties and a warning from council finance officers of a section 114 notice.

Cllr Jones said: “The inherited budget set for 23/24 was proven to be non-realistic and undeliverable almost immediately.

“We are still uncovering issues that will be dealt with, but it will take time.”

She highlighted historically low rates of council tax, on top of low levels of financial reserves and high debt as key reasons behind the borough’s financial state.

The threat of a section 114 notice – which would effectively declare the council bankrupt – was also acknowledged by councillor Adam Bermange (Boyn Hill, Lib Dem).

He said: “In hindsight its been very clear that the previous budget was set by people who knew they wouldn’t have to actually implement it.

“As a consequence, we the risk the section 114 notice which has reared its ugly head again and it can’t be understated what a difficult position that would put us in as a council.

“Not everyone’s going to be very happy, we know that’s that case, but I would much rather be in a position now where we actually sort out this mess and actually face it head on rather than trying to bury it for another year because [we have to avoid the] consequences of a 114 notice.”

A section 114 notice prevents a council from spending on non-essential services.

Leader of the Council, Simon Werner (Pinkneys Green, Lib Dem) said: “It’s important to say that his budget doesn’t fix all the problems of the last administration.

“There are just too many to be fixed in one year.

“I don’t want people to think this is job done now, it really isn’t, but this budget’s a really important step in fixing the mess this council is in.”

He added: “I want to see the council back in the heart community, championing the residents in their many worries and concerns and this budget is the first step towards that ultimate goal.”

The draft budget will now go out to consultation, allowing members of the public to have their say on what is being proposed.

The budget is due to be finalised in February 2024.