Cash-strapped council faces 'slash and burn' cuts

The situation facing Windsor and Maidenhead's finances was described as an "existential crisis" by it council chief executive

A cash-strapped local authority has warned residents it faces a "slash and burn" approach to service cuts unless it is allowed to approve large council tax rises.

Royal Borough of Windsor and Maidenhead wants permission from the government to raise council tax beyond the 5% legal limit to fill a £16m budget deficit.

The council's leadership said it would otherwise be forced to issue a Section 114 notice - effectively declaring bankruptcy - and being unable to protect anything other than essential services.

The government said it was sticking with the current cap on council tax increases but said it had pledged £4bn in new funding for councils in last month's Budget.

Stephen Evans, the council's chief executive, told a meeting last week that the authority faced an "existential crisis".

He said issuing a Section 114 notice would result in councillors "losing control" and "[government] commissioners going in and taking slash and burn decisions".

Elizabeth Griffiths, executive director of resources at the council, said: "It will be people who don't know the area, don't know the services, don't know the locals, don't know the councillors, don't know the staff, coming in and taking more removed decisions quickly.

"The really key thing is the idea that we're going to have to raise council tax.

"We can't cut any further - where we are is a consequence of the cuts that have been made in the past.

"Without a significant injection of funding there just isn't a way out of it."

Speaking in the Commons last week, communities minister Matthew Pennycook said: "The government certainly recognises the pressures on local authorities and the burdens placed on households as a result of 14 years in which local government was run down.

"We are determined to turn that situation around."