OTHER avenues to seek out additional help to ease Slough Borough Council’s financial crisis were denied by the government, councillors were told.

Chief finance officer Steven Mair said the local authority submitted up to 10 proposals to Ministers that would have seen the council gain extra cash.

However, they were given the no-go and were told the only way to sort out its money woes was via a capitalisation direction, which uses capital money gained from asset sales to pay off its debts and deficit.

Slough Borough Council effectively declared bankruptcy in 2021 and plans to increase council tax by 9.99 per cent without holding a referendum and sell up to £600m of land and properties to reduce its £357m blackhole and £760m borrowing bill.

READ MORE: Slough Council's £79m blackhole 'could have been sorted earlier'

Speaking at an overview and scrutiny meeting on Thursday, February 23, the chairman Cllr Harjinder Gahir (Lab: Wexham Lea) asked if the council persuaded Ministers if the local authority could have an increased share or all of the business rates it collects.

Mr Mair said they did peruse this as well as freedoms and flexibility on the public health grant, and eight other avenues of funding but to no avail.

He said: “The government’s response was ‘no, you will seek a capitalisation direction’.

“We spent a large amount of time and a lot of meetings giving [the government] options to help the council and the response was at the end of the day, you will have to have a capitalisation direction.”

Council leader James Swindlehurst (Lab: Cippenham Green) reiterated that if the government allowed the local authority to keep its business rates, it would be “one of the richest councils” in England given how lucrative Slough’s economy is.

READ MORE: Slough Council would be rich if business rates were kept, says officer

He also said the government was “reluctant” to give Slough Borough Council more freedoms to tackle its debt because it would mean other local authorities experiencing financial difficulties would also make the same requests, creating a large backlog and pressure on the government.

According to the 2023/24 budget report, the extra five per cent in council tax could raise an additional £3.2m.

Mr Mair said they will be using £1.2m of that fund to expand the council tax reduction scheme, while the remaining sum will be used to reduce the capitalisation direction and future annual savings of £13.4m to £12.9m.

Nearly £11m has been allocated to the council tax reduction scheme, which would see reduced bills for approximately 9,300 households on a low income.

The proposed changes to the scheme will mean 5,357 current working-age claimants will pay less in council tax. Of these, 3,552 of the most vulnerable working-age households currently paying 20 per cent towards their council tax would not have to pay any this year.