This week the Royal Borough of Windosor and Maidenhead (RBWM) approved a 2025.26 budget, facing unprecedented debt that has been blamed on the previous Conservative-led council.
RBWM is more than £230m in debt – and says it spends £18.6m a year on interest and repayments, according to the Local Democracy Reporting Service.
As Cllt Wisdom da Costa of the has stated this vote is: “The most significant issue it has ever faced, whether or not to approve a Budget (expenditure plan) which would result in needing to BORROW £35m each year for six years just TO FUND DAY-TO-DAY BILLS.
“This would result in the Council racking up more than £300m in debt and having to pay a further £120m in interest costs over 20 years.
“This strategy will cost RBWM tax payers nearly £1/2Bn over 20 years of the debt repayment.”
At 5 March’s council meeting Cllr. Wisdom Da Costa urged fellow councillors to reject the Budget and go to a Referendum to allow residents to make an informed decision rather than foist up to £1-2Bn of debt repayment on citizens, and our children and grandchildren.
This is a point that I as chairman of the West Windsor Residents Association wholly agree with. Taking governemnt money now is merely papering over the cracks 0r robbing Peter to pay Paul.
While years of mismanagement and cut to the bone council tax rates cannot be done overnight, I’m afarod short-term pain and long-term gain is the only way forward.
A referencum on the Lib Dem budget proposal and one proffered by the councillors currently acting as a dependent group was the sensible way forward.
This is a crucial moment in the history of the borough. We only have to look at the state of Slough Council to see how badly budgetary mismanagement can go.
To be clear, the RBWM Cabinet voted to approve these matters for full council to vote upon:
That Cabinet recommended that Council approved the approach to balancing the 2025/26 budget, specifically the:
a) net revenue budget of £165.450m as set out in the main body of this report;
b) approval of a council tax increase of 8.99%, following agreement from government to increase the level by 4% above the 4.99% cap;
c) fees and charges as set out in Appendix E with delegated approval given to the Executive Director of Resources to make minor amendments to these prior to approval by Full Council;
d) flexible use of capital receipts for the purposes outlined in Appendix I;
e) Capital Strategy, including the Minimum Revenue Provision policy as set out in Appendix F;
f) capital programme as set out in Appendix G;
g) Treasury Management Strategy as set out in Appendix J;
h) allocation of £165.017m Dedicated Schools Grant as set out in Appendix K;
i) A pay award of 3% from 1 April 2025 for all staff paid on RBWM local pay scales as set out in Appendix L to this report; and
j) the council tax setting report at appendix P, which will not appear as a separate item at Council.
ii) In recommending the 2025/26 budget to full council, Cabinet noted that the council’s ability to set a balanced budget for next year was dependent on government agreeing to the council’s request for an additional £103m of borrowing next year through a ‘capitalisation direction, which had now been superseded as government had agreed to this following the publication of the report.
iii) Cabinet also agreed not to recommend to Full Council that RBWM should conduct a referendum to increase council tax by 20% above the 4.99% cap in 2025/26.
ddressing budget problems for a local authority like the Royal Borough of Windsor and Maidenhead involves a complex interplay of factors. Here’s a breakdown of potential strategies, considering the typical challenges faced by such councils:
1. Revenue Generation:
- Council Tax:
- Careful consideration of council tax increases, balancing the need for revenue with the impact on residents.
- Ensuring efficient collection of council tax.
- Business Rates:
- Supporting local businesses to thrive, as this increases business rate revenue.
- Attracting new businesses to the area.
- Commercial Ventures:
- Exploring opportunities for commercial ventures, such as property development or providing services to other organizations.
- Maximizing revenue from existing assets.
- Tourism:
- Windsor is a major tourist destination. The council can seek to maximize the revenue that is generated from tourism. This could include things like parking charges, or fees for attractions.
- Grants and Funding:
- Actively seeking and securing government grants and other external funding sources.
2. Expenditure Reduction:
- Service Reviews:
- Conducting thorough reviews of all council services to identify areas for efficiency savings.
- Prioritizing essential services and considering reductions in non-essential areas.
- Digital Transformation:
- Investing in digital technology to streamline processes and reduce administrative costs.
- Encouraging online service delivery to reduce reliance on physical resources.
- Shared Services:
- Exploring opportunities to share services with neighboring councils to reduce costs.
- Procurement:
- Improving procurement processes to ensure value for money when purchasing goods and services.
- Asset Management:
- Optimizing the use of council-owned assets and considering disposal of underutilized assets.
3. Strategic Planning and Financial Management:
- Long-Term Financial Planning:
- Developing robust long-term financial plans to ensure sustainability.
- Accurate forecasting of future costs and revenues.
- Transparency and Accountability:
- Maintaining transparency in financial decision-making and ensuring accountability for spending.
- Public Consultation:
- Engaging with residents and businesses to understand their priorities and gather feedback on budget proposals.
Key Considerations for Windsor and Maidenhead:
- The area’s unique characteristics, such as its popularity with tourists and its affluent population, should be taken into account.
- The impact of any budget changes on vulnerable residents must be carefully considered.
- The council must find a balance between providing high quality services, and keeping costs down.