RT.com
01 Oct 2023, 19:43 GMT+10
Berkshire council, home to Windsor Castle, is more than $240 million in debt and runs 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 Pound 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.
On top of this, it is budgeted to overspend by another Pound 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.
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.
"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.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Central Asia Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Central Asia Times.
More InformationBRUSSELS, Belgium: Meta is holding firm on its controversial pay-or-consent model, a move that could lead to fresh antitrust charges...
LONDON, U.K.: American consumers and businesses could soon face the highest overall tariff burden in more than a century, according...
The family of Sayfollah Saif Musallet, a 20-year-old American citizen who was beaten to death by Israeli settlers in the occupied West...
CONCORD, New Hampshire: A federal judge in New Hampshire issued a crucial ruling on July 10 against President Donald Trump's executive...
DUBAI, U.A.E.: A cargo ship flagged under Liberia, known as the Eternity C, sank in the Red Sea following an attack executed by Yemen's...
WASHINGTON, D.C.: The Trump administration has started sending some weapons to Ukraine again, just a week after the Pentagon told officials...
Tensions between the long-time allies are not solely over tariffs and could have security implications, according to the outlet Relations...
New Delhi [India], July 14 (ANI): President Droupadi Murmu, graced the fifth convocation ceremony of AIIMS, Bhubaneswar, at Bhubaneswar,...
Dubai [UAE], July 14 (ANI): Madhya Pradesh Chief Minister Mohan Yadav, currently on an official visit to the UAE as part of the MP...
Dubai [UAE], July 14 (ANI): Madhya Pradesh Chief Minister Dr Mohan Yadav met industry leaders in the UAE's trade sector during his...
(250714) -- SHENZHEN, July 14, 2025 (Xinhua) -- Tanaka Kokoro (R) of Japan competes during the Group B match between Japan and the...
New Delhi [India], July 14 (ANI): Minister of State for External Affairs Pabitra Margherita, during his recent Malaysia visit, emphasised...