The King faces a major council tax hit for Windsor Castle after the local council said it was planning to raise the levy by 25pc.
The Royal Borough of Windsor and Maidenhead is seeking to raise council tax by 25pc to avoid becoming the latest council to declare bankruptcy.
The Lib Dem local authority has been on the verge of issuing a Section 114 notice – which effectively declares a council bankrupt – for more than a year.
Councillors at the Royal Borough, which encompasses Windsor Castle, complained council tax was too low compared with other local authorities in the area. They are asking the Government to approve a bumper rise in council tax that would see residents in an average Band D property pay £320 more a year.
Council tax for property on the estate at Windsor Castle is paid by the Sovereign Grant, which is funded by profits from the Crown Estate, a portfolio of land and assets owned by His Majesty.
Assuming the castle is in the highest council tax band, Band H, it would currently pay £3,343 and face an increase of £836 a year between 2025 and 2026.
Cllr Lynne Jones, an independent and deputy leader of the council, blamed “historic debt” accumulated by past administrations for the tax increase.
She said: “Previous administrations cut council tax when every other council was either freezing it or putting on small amounts. We have inherited a financial situation that is just not viable for the council. Our council tax is so low compared to others.”
The Berkshire council has debts to the tune of £230m, according to its figures, which is costing more than £18m a year to service.
“It’s a huge amount,” said Ms Jones. “We have no facility to cope with the increases in the cost of social care and housing which are the big figures, and of course our debt. It’s either this or a Section 114, there is no choice,” she added.
Windsor and Maidenhead council was previously under Conservative control until the May 2023 local elections, when the Liberal Democrats won the most amount of seats.
Councils are forbidden from raising tax by more than 5pc in a year unless they receive special permission from ministers. It is a move more local authorities have resorted to recently as many fail to balance budgets.
Windsor and Maidenhead council has also asked for a taxpayer-funded bailout from the Government of £60m, and said it would be forced to effectively declare bankruptcy unless the funding was approved.
Sally Coneron, an opposition Conservative councillor, said the increase was “not realistic” in terms of what residents can afford to pay.
“According to the current administration there has been a continuous too low council tax that has caused all these problems. But this is terrible for our residents.”
She added: “25pc is just not realistic for people to manage. Keeping tax low and allowing our residents to keep their money is vital. It seems to me that council tax is the easiest way to get money in but has the most detriment on the residents.”
Lib Dem council leader, Cllr Simon Werner, said: “While difficult decisions have already been made over the last 18 months, it’s clear that we will need to continue to make tough calls – to fix the mess we inherited and prepare a budget for 2025 to 2026 that balances.”
Council tax for a Band D property in the Royal Borough is currently £1,594 a year and rose 5pc – £77 – last year.
Local authorities including Slough, Thurrock, Birmingham, Croydon and Nottingham have all issued Section 114 notices in recent years amid ongoing fiscal crises.
