Councillors back plans to reduce council tax support to end Slough's 'outlier' status

Plans to reduce Slough’s council tax support for low-income residents could ensure the borough is no longer ‘an outlier’ among neighbouring authorities, a meeting heard.

The Council Tax Support Scheme (CTS) is run by local authorities to support low-income residents with paying their council tax.

Slough Borough Council used to cover 100 per cent of the council tax bill for working age households not in employment.

Since April last year, the maximum discount unemployed residents can receive was reduced to 80 per cent, while working residents can get up to a 50 per cent discount.

Slough Borough Council is now proposing to reduce the maximum discount for non-working residents to 70 per cent.

A reduction by 20 per cent in the other discounts for working households, depending on income bands, is also proposed. Pensioners will not be affected by the changes.

At a cabinet meeting on Monday, January 19, councillors backed the proposals to reduce the discounts further so Slough Borough Council is no longer ‘an outlier’ compared to neighbouring local authorities.

Councillor Wal Chahal (Con, Langley Marish) said the local authority is trying to meet the needs of residents who need council tax support in a ‘fair equitable way’.

“We’re not just cutting back and cutting back and cutting back,” Cllr Chahal said.

“To bring us into line with other authorities in Berkshire is also key because that shows we’re not the outlier anymore. We can’t afford to be the outliers anymore because as a council we have a massive amount of debt.”

The scheme costs Slough Borough Council £10.45million but the proposed cuts would save £872,198 in council tax support in the 2026/27 financial year.

Council leader Councillor Dexter Smith (Con, Colnbrook and Poyle) agreed and said Slough Borough Council has been ‘the most generous’ with local tax support in Berkshire.

Cllr Smith said: “As an authority receiving exceptional financial support, it didn’t seem to be an appropriate way for us to behave. We wanted to bring ourselves in line with other Berkshire authorities.”

There are 6,466 working-age households that receive council tax support, and the majority of these, 5,545, will be impacted by the proposed changes.

For the households affected, the proposed changes would result in a reduction of between £126 and £200 per year.

Other forms of support, such as the Council Tax Support Hardship Fund, will also remain open for residents in the 2026/27 financial year.

This is a pot of money available for those who are experiencing ‘extreme financial difficulty’ and are unable to pay their council tax.

It is proposed that this fund is reduced from £350,000 to £175,000.

But councillors also agreed to ‘roll over’ £80,000 of unspent hardship funds from this year’s pot into next year.

According to the report that came before cabinet, 743 applications were received for the CTS hardship scheme as of December 31.

Cllr Mabu Shaik (Con, Langley Meads) raised concerns over the low acceptance rate for residents who applied for the council tax hardship fund. Only 137 of these were awarded financial support.

A total of 459 applications were refused due to a range of reasons, including people not providing the needed supporting information, having a sufficient income or being exempt from paying council tax.

Other cases, 135, are still awaiting processing.

Andy Jeffs, the council’s director of revenues and welfare services, said: “We will try and simplify that [application] process going forward, with more targeted contact.

“We will be offering face to face [support] at the Birtwell Hub going forward.”

The CTS reductions are due to be adopted in April, but this is only if the full council also gives its stamp of approval.