This article is from the source 'rtcom' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.rt.com/business/583856-uk-council-bankruptcy-windsor-berkshire/
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| 'Royal' UK borough declares it’s nearly broke | |
| (about 5 hours later) | |
| Berkshire council, home to Windsor Castle, is more than $240 million in debt and is running a high risk of insolvency | |
| The United Kingdom’s Royal Borough of Windsor and Maidenhead is on the brink of bankruptcy as the country’s increasing interest rates have sent the cost of servicing its debt of £203 ($240 million) soaring. | The United Kingdom’s Royal Borough of Windsor and Maidenhead is on the brink of bankruptcy as the country’s increasing interest rates have sent the cost of servicing its debt of £203 ($240 million) soaring. |
| The local authority in Berkshire, which includes Windsor Castle within its catchment, has overspent by more than seven million pounds (over $8.5 million) so far this year, councillors were told on Saturday. | The local authority in Berkshire, which includes Windsor Castle within its catchment, has overspent by more than seven million pounds (over $8.5 million) so far this year, councillors were told on Saturday. |
| On top of this, it is budgeted to overspend by another £6.2 million in the financial year 2024-25. | On top of this, it is budgeted to overspend by another £6.2 million in the financial year 2024-25. |
| “Historic spending decisions on council tax and borrowing, weak financial management and low financial resilience over the past decade – coupled with macroeconomic pressures such as inflation – have made the council’s position vulnerable,” Finance councillor Lynne Jones said, according to the council’s website. | “Historic spending decisions on council tax and borrowing, weak financial management and low financial resilience over the past decade – coupled with macroeconomic pressures such as inflation – have made the council’s position vulnerable,” Finance councillor Lynne Jones said, according to the council’s website. |
| The latest challenges are attributed to increasing demand for adult social care and to high levels of inflation. | The latest challenges are attributed to increasing demand for adult social care and to high levels of inflation. |
| Sorting out the council’s finances will be the top priority for the cabinet until a stable financial position is achieved, according to Jones, who pledged to do “everything we can” to avoid issuing a Section 114 notice, which would effectively declare the council bankrupt. | Sorting out the council’s finances will be the top priority for the cabinet until a stable financial position is achieved, according to Jones, who pledged to do “everything we can” to avoid issuing a Section 114 notice, which would effectively declare the council bankrupt. |
| “However, the situation is complex and challenging, and it will take time to pull this around,” she added. | “However, the situation is complex and challenging, and it will take time to pull this around,” she added. |
| The Windsor and Maidenhead council is the latest in a series of local authorities that have fallen into financial insolvency over the past two years. Neighbouring Slough Borough Council declared a section 114 notice in 2021. Other councils around the country which have admitted inability to meet their spending commitments in the past few years include Croydon, Thurrock and Birmingham. | The Windsor and Maidenhead council is the latest in a series of local authorities that have fallen into financial insolvency over the past two years. Neighbouring Slough Borough Council declared a section 114 notice in 2021. Other councils around the country which have admitted inability to meet their spending commitments in the past few years include Croydon, Thurrock and Birmingham. |
| For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |