Birmingham City Council will raise council tax by 7.5% this year, despite seeking a higher increase. The government approved only a limited rise due to financial issues.
Birmingham: The city council will raise council tax by 7.5% this year. This is one of the few councils allowed to increase taxes due to financial struggles.
Angela Rayner, the Deputy Prime Minister, rejected the council’s request for a larger increase. They wanted to raise it by 9.99% for the second year in a row.
Rayner explained that many councils face financial difficulties due to past government decisions. She mentioned that this has led to many councils asking for extra support.
She stated that the government approved small increases for six councils, including Birmingham. The new tax rates will still be lower than the average for similar councils.
For Band A properties, the council tax will rise by £104, bringing the total to £1,493.35. Band D properties will see an increase of £156.82, totaling £2,240.04.
Rayner emphasized that councils must decide on tax rates locally. They should also consider how to protect vulnerable residents from these increases.
This announcement is part of a larger funding plan for local authorities, totaling £69 billion, which is a 6.8% increase from last year.
The city council plans to publish its draft budget soon, outlining further savings and cuts. We have reached out for their response to this news.
