PRESS RELEASE: Royal Borough of Windsor and Maidenhead, Tuesday 11 February 2025:
What residents need to know
The Royal Borough of Windsor & Maidenhead (RBWM) is in severe financial crisis, with mismanagement, hidden errors and a lack of transparency putting taxpayers at risk. Here are the key issues every resident should be aware of:
£30 million in accounting errors – and more could be found
RBWM has admitted to £30.1 million in accounting errors, including:
- £2.6 million left in the wrong account, sitting unused (note: this was referred to in Deloitte report to Audit Committee).
- £5 million in overestimated Business Rates income, leading to spending based on money that didn’t exist (referred to in Deloitte Value for Money (VFM) conclusion – as shown below)
- £8 million in underpaid debt repayments, making finances look healthier than they were (this issue was included in Deloitte Audit Committee report, but didn’t include 23/24 impact as they were only signing off 22/23 accounts).
- £14.5 million in routine expenses wrongly classified as long-term investment, masking the scale of overspending (this issue was included in Deloitte Audit Committee report, but didn’t include 23/24 impact as they were only signing off 22/23 accounts).
At the Corporate Overview & Scrutiny meeting on 5th February 2025, Chief Financial Officer Ian O’Donnell admitted that even more historical financial errors could be uncovered as new financial systems are introduced.
Basic accounting errors highlight poor financial management
One example of RBWM’s financial mismanagement is the recording of computers as lasting 50 years—an unrealistic accounting error that further distorted the true financial picture.
RBWM’s debt is growing – now needs up to £80 million in Emergency Support
RBWM initially expected to borrow £60.3 million in Exceptional Financial Support (EFS), but following the rejected 25% council tax increase, this figure will now likely increase to £70-80 million.
A damning report confirms RBWM’s financial collapse
Independent auditors Grant Thornton have confirmed RBWM is functionally bankrupt due to:
- A collapse in accounting standards over the last four years: Grant Thornton’s letter highlights significant issues in RBWM’s financial management and governance. They express concerns about the council’s financial sustainability and effective governance in both the short and medium term. The letter points to historical problems and underlying deficits that need addressing.
- Repeated failures of financial recovery plans: The letter notes that RBWM has faced significant financial challenges, leading the council to seek Exceptional Financial Support (EFS) from the government. This move indicates that previous financial strategies and recovery plans have been insufficient in addressing the council’s fiscal issues.
- The risk of a Section 114 notice (effective bankruptcy): Grant Thornton emphasises the severity of RBWM’s financial position, suggesting that without substantial corrective actions, the council is at risk of financial failure. The letter underscores the urgency for the council to implement effective measures to avoid such outcomes.
This follows the CIPFA Resilience Review, which found RBWM’s debt has soared to over £230 million, with 10% of the council’s entire budget now going to repayments instead of public services. The CIPFA report can be found here.
We are not the only ones asking for an investigation
Former Conservative council leader Andrew Johnson has written to the Government calling for an independent inquiry. He states he was unaware of these accounting errors during his leadership from 2019 to 2023, because RBWM council officers were informing him that there were “balanced budgets”.
Chief Financial Officer left suddenly after assuring “No Unlawful Transactions”
RBWM’s Chief Financial Officer, Elizabeth Griffiths, left abruptly in November 2024.
Just days before her resignation, in response to a detailed letter with legal and financial questions from tBfI member Andrew Hill LLB, she assured councillors that nothing unlawful had taken place.
This raises serious questions about why she left and what she knew.
tBfI Councillor, Cllr Alison Carpenter voted against the budget in 2024 because it was built on unrealistic assumptions and wishful thinking rather than financial prudence. The largest savings relied on undeliverable cuts to social care, revenue projections were overestimated, and key costs—like the museum relocation—were ignored. We have now found out that the so-called “phoenix budget” was built on fantasy rather than financial reality (Cllr Werner called it a phoenix budget as it was supposedly “rising from the ashes”).
Cllr Carpenter says, “In February 2024, I warned that the budget would not stay balanced, and now, with a £16M overspend, my concerns have been proven correct. Instead of facing reality last year and issuing a Section 114 notice, we are now forcing residents to shoulder the burden of financial mismanagement.”
See this on YouTube at 2h33m27s https://www.youtube.com/live/_B_g2jL3RHg?si=B2jtRYgGHA7lK8qx
Ignored warnings: Deloitte recommendation rejected
In a recent Audit & Governance Committee meeting, external auditors Deloitte recommended further financial assurances be put in place. However, Lib Dem councillors voted against this, citing resource concerns. The rejection raises serious questions about RBWM’s commitment to financial accountability. See this on YouTube from 2h27m10s https://www.youtube.com/watch?v=lXJlB2LOdAE&t=9681s
The Lib Dem/Independent cabinet attempted to raise council tax by 25%, a move that we believe would have had a significant strain on many residents’ finances, instead of properly investigating how the council got into this financial mess and having a long term plan on how to rebuild the council to make it fit for purpose.
Too many councillors are silent….
RBWM’s financial crisis is not just an accounting problem—it means:
✔ Higher taxes
✔ Cuts to local services
✔ A council struggling to manage its finances
Yet many councillors remain silent, despite repeated warnings from tBfI councillors, tBfI members and external bodies demanding transparency. More alarmingly, RBWM’s Cabinet and the Lib Dem/Independent cabinet have failed to call for an independent investigation into these failings.
If Andrew Johnson, the former Conservative leader, is demanding an inquiry, why isn’t the current administration? Residents deserve to know:
- Why are RBWM’s leaders ignoring the growing calls for an external investigation?
- What are they doing to hold those responsible for these financial errors to account?
- How can councillors represent their wards if they aren’t being told the full truth?
- There are 41 elected councillors in RBWM not just 10 cabinet members, these councillors are responsible to their residents but are ignored by the leadership and failure is pushed onto those wards without transparency or debate.
The Borough First Independents demand action
tBfI members and councillors have consistently challenged the budgets and demanded an investigation to hold those responsible accountable. We welcome that others are now also demanding an immediate, independent inquiry into RBWM’s finances.
Cllr David Buckley, tBfI Councillor for Datchet, Horton and Wraysbury ward said: “We should not accept failure without investigation as to why it occurred. We need to understand all factors and why we cannot rely on budgets presented to us since 2023 and ongoing. There are common denominators here that need to be disclosed and lessons learned. Residents deserve to know what their tax burden is to rebuild the council and over what period of time. When will we have a council that is fit for purpose and financially sustainable for residents to trust and support?”
The Borough First Independents will keep fighting for financial transparency, accountability and a council that works for residents—not against them. #PeopleBeforePolitics
Ends
Notes to Editors
About ‘the BOROUGH first Independents’:
The Borough first Independents (tBfI) was founded in 2018 as a grass-roots up, local political party created to support independently-minded Councillors and prospective candidates, representing their local communities and working together on a common goal of making The Royal Borough of Windsor and Maidenhead a great place for all. Utilising proper democratic processes, our Councillors will make evidence-based and informed decisions that will enable our communities to be well-served and well-equipped to thrive in our rapidly changing world.
For more information on who we are, our core values and policies, please visit www.theboroughfirst.org
If you would like more information about this topic, please contact email info@theboroughfirst.org