Council tax could rise more than 5% for third year

Council tax in Slough could rise over the 5% cap for the third year in a row in April if the government and councillors approve the measures.

Updated spending and savings plans say the move is needed so that Slough Borough Council can meet its legal requirement to set a balanced budget for 2025-26.

Budget proposals published on Monday said it had asked the government for "exceptional financial support".

The request includes seeking "permission from government to increase council tax above the referendum limits".

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

If a council wants to increase tax beyond the cap, this is normally deemed "excessive" and can only be approved with a referendum.

But if agreed, Slough Borough Council could make the move without it.

That would mark the third year in a row the authority had raised council tax beyond 5%, with 9.99% increase in the 2023-24 financial year, and 8.5% in 2024-25.

However, the budget update does not say how much it would like to increase it by this time around, only that it has requested the basic amount of council tax is "higher than this before it is deemed excessive".

The latest request is part of an application for a support package from the government of £13.9m for the 2025-26 financial year.

It comes as the council is still recovering from effective bankruptcy in 2021.

The authority says it is also having to confront the rocketing costs of social care and temporary homeless accommodation.

Government grants have helped reduce next year's predicted funding gap from £17m but the council says its spending forecast is still £3.2m more than it currently has funding for.

Council leader Dexter Smith said the authority needed to make "tough choices" but would "continue to put vulnerable residents at the heart of our decisions while meeting our financial responsibilities".

The government's decision will not be revealed until late February.

Final budget proposals including the council tax increase will be voted on at a meeting of all councillors in March.

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