Soaring interest rates in Britain have sent the Kingdom’s Royal Borough of Windsor and Maidenhead to the brink of bankruptcy as the cost of servicing its £203 ($240 million) debt has skyrocketed.

With Windsor Castle contained within its catchment, the local authority in Berkshire has gone more than seven million pounds ($8.5 million) into additional debt this year, it was revealed to councillors on Saturday.

In addition, it is forecast to overspend an additional £6.2 million in the financial year 2024-25.

On the council’s website, Finance councillor Lynne Jones said, “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.”

Increasing demand for adult social care, and higher levels of inflation are being blamed for the latest financial challenges facing the council.

According to Jones, the top priority for the cabinet will be straightening out the council’s finances until it can achieve a stable financial position. Additionally she pledged to do “everything we can” to avoid effectively declaring the council bankrupt through issuing a Section 114 notice.

She added, “However, the situation is complex and challenging, and it will take time to pull this around.”

The Windsor and Maidenhead council is only the most recent local authority in a series to have entered financial insolvency over the previous two years. In 2021, nearby Slough Borough Council issued a section 114 notice. In addition, Croydon, Thurrock and Birmingham councils have all admitted to being unable to meet their spending commitments over the past few years.