COUNCIL tax is set to rise in a borough for only the second time in a decade, it has been revealed. 

Slough Borough Council revealed a 3.75% increase in council tax from April 2016, 2% of which will be ring-fenced for adult social care, during a budget announcement at St Martin's Place, Bath Road, Slough, on Monday.

The general council tax - not including the rate for adult social care - could have been increased by 1.99% before a referendum would need to take place.

Joseph Holmes, assistant director of finance and audit at the council, explained only a further 1.75% was needed to combat government cuts. 

However, the council is yet to receive this year's final settlement from central government.

Council leader Rob Anderson said: "At the start of the decade over half of the budget was government grant, by the end of the decade we will get none."

From 2015 to 2020, council tax and business rates will go from providing 75% of the council's finance to almost 100% - highlighting that business revenue is key for Slough.

Currently the council retains 49% of business rates and gives 40% of this to the government. This equates to it keeping approximately £30 million as well as 30% of any growth.

By 2020, the council will keep around £37 million and 100% of any growth.

Cllr Anderson said: "[The government cuts] are driving the council to behave much more like a private business. If we don't collect business rates we don't get the money."

Council savings plans in place for 2016/17 include the adult social care transformation, income from Slough Urban Renewal, and investing in infrastructure and assets that will provide income in the long term.

Cllr Anderson said although it was a difficult time for all local authorities, Slough is in a better position with long term plans already in place.

He said: “We aren’t closing libraries, we aren’t closing swimming pools. We are actually opening swimming pools. We aren’t in a position where we need to cut our arms and legs off to make savings."

Over the next five years key investments include £60 million into schools and education, providing a further five schools to meet demand.

The council has pledged a £30 million investment in leisure strategy with the aim of improving residents' health and saving money in healthcare later down the line, as well as £15 million in major transport schemes to enable an open and accessible place for businesses to relocate and £6 million in LED street lighting which will save hundreds of thousands of pounds a year in electricity costs according to the council.

This announcement is set to be discussed at Slough Borough Council's Overview and Scrutiny meeting on Thursday, taking place at Chalvey Community Centre from 6.30pm.