Cash-strapped authority plans 8.5% council tax rise

Slough Borough Council buildingImage source, Getty Images
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Slough Borough Council is increasing its council tax by more than the 4.99% for the second year in a row

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A cash-strapped local authority is planning to raise council tax by 8.5% despite an earlier promise to limit the increase to 4.99%.

Slough Borough Council was told by the government in December it could exceed the council tax cap of 5% for 2024-25.

But Conservative council leader Dexter Smith said he would resist this after, last year, the then Labour-run authority increased it by 9.99%.

Mr Smith has now said the "challenging" financial position the council was in left him no choice but to opt for the higher figure.

The final decision on the council tax rise will be made at the end of March, and the change would come info effect from April.

The council was one of several that has declared itself effectively bankrupt with a section 114 notice.

Last year, the authority raised council tax by nearly 10% in an attempt to balance its books, after it was given permission by the government.

Mr Smith previously said the next council tax rise would not exceed the cap of 4.99% - something he said in December was still possible.

"We think it is still reasonable and viable for us to maintain our budget commitment and promise to the electorate that we'd keep the council tax to 4.99%," he told cabinet members on 18 December.

Announcing plans to raise it by 8.5%, Mr Smith said the Conservatives were honouring "the manifesto commitment" not to raise council tax by another 9.99%.

He said the extra money would provide another £8m for adult social care, as well as allowing for extra funding for temporary accommodation and improved bin collection services.

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