Debt-ridden Slough Borough Council seeks tax rise above legal cap

A debt-ridden local authority is asking the government if it can raise council tax by more than the legal limit without holding a referendum.

Slough Borough Council, which effectively declared bankruptcy last year, wants to raise the levy above 4.99% for the next two years.

Increases above that level usually require a public vote.

The authority has not yet decided on a precise figure for the increase it wants to to introduce.

A rise of 1% would raise an extra £600,000, according to the Local Democracy Reporting Service.

The government allows local authorities to raise council tax by 4.99% without going to a referendum, a figure that had previously been set at 2.99% before the Autumn Statement in November.

Councillor James Swindlehurst, leader of the Labour-run authority, said: "I think given the scale of the cost of living pressures and everything, there's no certainty [the government] would allow us the power but if you don't ask, you certainly won't get."

The council has been constrained since last year when it issued a section 114 notice, which limits its spending powers to essential services only.

Plans have previously been outlined to sell properties it owns, including a leisure centre, cinema, DIY store, supermarket and warehouse.

It is also planning to move workers out of the headquarters it bought for £39m four years ago.

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