Agenda item

i.  Agreed to approval being sought from DLUHC for the Council to have the option of increasing Council Tax above the referendum limits in each of the next 2 financial years (2023/24 and 2024/25) without a referendum

ii.  Delegated authority to the Chief Executive, after consultation with the Section 151 officer, the Leader of the Council and the Lead Member for Finance, to submit an application to DLUHC in early January 2023, including agreeing the percentage increase in Council Tax

iii.  Delegated authority to the Chief Executive, in consultation with the Section 151 officer, the Leader of the Council and the Lead Member for Finance, to design and consult on a revised Council Tax Support Scheme

iv.  Noted that the final decision on any increase to council tax will either be made by direction of the Secretary of State or by Full Council, if the Secretary of State does not make a direction and the final decision on a revised Council Tax Support Scheme will be made by Full Council.

The Cabinet agreed to consider an urgent item on 2023/24 and 2024/25 Council Tax following the Department of Levelling Up, Housing & Communities (DLUHC) announcement regarding the permissible increases to Council Tax over the next two financial years.

The report sought Cabinet agreement to make an application to DLUHC for the Council to have the option of increasing the Council Tax above the referendum limits for the next two years.  The reason for urgency was that DLUHC had advised that any such request would need to be made in early January.

The Government’s Autumn Statement was published on 17^th November 2022 and, for Slough,  the threshold for increasing Council Tax was set at 4.99% from April 2023 without the need for a referendum.  Local authorities could apply for a direction from DLUHC to increase Council Tax for a certain amount above this threshold.  If that option was pursued the Council Tax Support Scheme would also need to be reviewed.

The Local Government Finance Settlement had not yet been announced and the implications for SBCs finances would need to be carefully analysed to determine whether any percentage increase in Council Tax above the threshold may be required.  However, in view of the very tight timing it was recommended that it was prudent to seek the delegation to submit an application so the option may be available if required.  It was recognised that DLUHC may not agree to such an application.

The delegation would enable the Chief Executive to submit an application, following consultation with the Leader and the Lead Member for finance.  The final decision on the level of Council Tax would remain a decision for full Council when setting the budget.  The Cabinet agreed the recommendations.

Resolved –

(a)  That it be agreed to approval being sought from DLUHC for the Council to have the option of increasing Council Tax above the referendum limits in each of the next 2 financial years (2023/24 and 2024/25) without a referendum.

(b)  That delegated authority be given to the Chief Executive, after consultation with the Section 151 officer, the Leader of the Council and the Lead Member for Finance, to submit an application to DLUHC in early January 2023, including agreeing the percentage increase in Council Tax.

(c)  That delegated authority be given to the Chief Executive, in consultation with the Section 151 officer, the Leader of the Council and the Lead Member for Finance, to design and consult on a revised Council Tax Support Scheme.

(d)  That it be noted that the final decision on any increase to council tax would either be made by direction of the Secretary of State or by Full Council, if the Secretary of State does not make a direction and the final decision on a revised Council Tax Support Scheme will be made by Full Council.