Millions of households face council tax rises of up to five times the standard limit this year, with one area potentially seeing the largest increase in England for 20 years.
This year, Windsor and Maidenhead has budgeted for a 25 per cent rise in its 2025 figures, which would add £451 on average to taxpayers’ bills.
"Without a significant council tax increase above the capped level, aligned more closely with the borough's neighbouring areas, the council is unable to reach financial sustainability," its draft budget says.
The request is part of an appeal for exceptional financial support from the government, which must be signed off by the Secretary of State for Housing, Communities and Local Government, Angela Rayner.
The authority is more than £230m in debt – and says it spends £18.6m a year on interest and repayments.
The government may not make a formal decision until the end of February – potentially just days before the council has to set its budget.
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Can authorities increase Council Tax without a vote?
Under local government rules, councils are allowed to increase council tax by up to 4.99 per cent - something most authorities around the country have been doing each year.
Proposals to raise Council Tax above this percentage usually have to be approved by a referendum of local residents - not something many taxpayers are queuing up to agree to.
But councils can use an emergency measure with what's called a Section 114 notice, a report from the council’s finance officer firmly stating they believe the authority cannot operate within its existing budget.
This is similar to a declaration that the council is bankrupt, and is considered by central government on a case-by-case basis.
A five per cent limit was set for authorities for 2023-24 but the government permitted a handful of councils to increase council tax above that threshold.
Croydon was allowed to raise its rates by 15 per cent, while Thurrock and Slough were allowed to increase theirs by 10 per cent.
This year, eight struggling councils plan significant rises of between 9.99 per cent and 15 per cent from April in order to take advantage of this legal loophole.
Where is council tax expected to rise?
- Windsor and Maidenhead – 25 per cent
- Hampshire – 15 per cent
- North Somerset – 15 per cent
- Bradford – 15 per cent
- Newham, east London – 10 per cent
- Cheshire East – 9.99 per cent
- Birmingham – 9.99 per cent
- Slough – 7.99 per cent
Hampshire county council, Bradford council and North Somerset are all looking at rises of 15 per cent.
In a letter to county councillors, Hampshire’s chief executive Carolyn Williamson said that “despite being a well-run, high-performing council that manages its resources with the utmost care and precision, we can no longer make enough savings and still deliver our statutory responsibilities”.
Birmingham City Council is looking into raising council tax by 9.99 per cent for the second consecutive year.
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