Government rejects plans to raise council tax by 7.99 per cent in Slough

The Government has refused to allow Slough Borough Council to raise council tax beyond the maximum limit for the third year running, it has been confirmed.

Slough Borough Council asked the Government for permission to increase council tax by 7.99 per cent – three per cent above the limit for most councils. But the government refused this on Monday, February 3.

The council said this meant it would have to review its spending plans for next year. A spokesperson said: “We can confirm we have not received permission for our council tax increase to be above the national cap of five per cent.

“This is obviously very recent news and in light of this we are reviewing our current budget position and revisiting the proposals contained within our draft budget.”

Government rules say authorities such as Slough cannot raise council tax beyond a maximum of 4.99 per cent.

If a council wants to increase tax by five per cent or more, this is normally deemed ‘excessive’ and can only be approved with a referendum.

But cash-strapped Slough Borough Council asked the government to agree that its limit should be higher, as part of a request for ‘exceptional financial support’.

It was one of eight councils to have done so this year – having had permission to raise council tax by 8.5 per cent last year and 9.99 per cent the year before.

Local authorities across the country face increasing demand and costs of providing services – particularly social care and homelessness accommodation, which they have to provide by law.

But Slough was not among the six councils permitted to increase council tax above the 4.99 per cent cap when the government announced its final funding packages for councils on Monday.

A government spokesperson told the LDRS it couldn’t comment on individual councils’ requests. But they said it had considered each one carefully and put taxpayers first.

The spokesperson said: “We have kept the impact on taxpayers at the forefront of our decision-making and we have been clear that any request from councils for additional council tax rises would be considered on a case-by-case basis.”

The refusal raises the possibility that Slough Borough Council may have to find savings elsewhere.

Draft spending plans already include proposals to close two library buildings and some community halls, reduce council tax discounts for low-income households and introduce new parking charges.

But the latest draft, published last month, said the council still had to find £3.29 million to balance its budget.

A council spokesperson previously told the LDRS a 7.99 per cent council tax increase could have raised £2.47 million. The proposed increase was part of a request to the government for exceptional financial support worth £13.9 million.

Slough Borough Council says it expects to increase council tax by 4.99 per cent, and that the government’s decision on the rest of its request for support is due at the end of February. Final spending plans will be voted on at a meeting of all councillors on March 6.