Council wants 9.9% council tax rise amid £153m cuts

Birmingham City Council is requesting permission from the government to raise council tax by 9.9% this year, at the same time as making cuts of £153m.

A meeting of the council's cabinet has heard the authority would not be able to set a lawfully balanced budget without the request - but, without the go-ahead it can only raise the tax by a maximum of 5%.

Following another rise in 2024, it means residents face a total increase of 21% over the two years, approximately £400 on a band D property.

The city council effectively declared itself bankrupt in October 2023 as it struggled to deal with equal pay claims originally estimated to total £750m.

An agreement to settle the claims was announced last month with the cost thought to be substantially lower.

The leader of the council, Labour's John Cotton, said "significant progress" had been made on tackling the financial problems, but the journey was far from over.

Conservative opposition leader Robert Alden, said Birmingham residents were facing "another double whammy of higher council tax for fewer services in the year ahead".

The Ministry of Housing, Communities and Local Government has confirmed no decisions have been made on council tax rises.

"We will only consider agreeing to requests for rises above 5% in exceptional circumstances, in line with the previous government's position," a spokesperson said.

"Councils are ultimately responsible for setting their own council tax, and we will put taxpayers at the forefront of any decision."

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