Council tax pledge to 189,000 vulnerable Birmingham residents amid planed bills rise

As Birmingham residents brace themselves for an expected rise in council tax, there have been reassurances that the city’s most vulnerable residents will still be supported.

Earlier this month, it was reported that Birmingham City Council has asked the government for permission to increase council tax by up to 10 per cent each year for two financial years.

Amid this latest development, there will now likely be a review of the authority’s Council Tax Support System, which provides help for a range of residents including pensioners and those caring for a child under six-years-old.

The expected rise comes after the Labour-run council effectively declared bankruptcy last September as it faced several issues including rising demand for services, an equal pay fiasco, the failed implementation of a new IT and finance system and years of austerity cuts.

Government-appointed commissioners were soon sent in to help lead the council out of its catastrophic financial situation. In a report issued before a council Cabinet meeting this week, Finance chief Fiona Greenway said if the authority seeks permission to increase the Council Tax level above the referendum limit then it will “review the support available to payers to offset the potential impact to residents.”

A commissioner review of the report also recommended that the current Council Tax Support Scheme be reviewed as soon as possible “to ensure it is appropriate for current circumstances.”

Labour councillor Nicky Brennan, cabinet member for Social Justice, Community Safety and Equalities, said it’s vital that such support remains in place as thousands across the city face tough times.

“I know it says there will be a review of the Council Tax Support Scheme but I think it’s really important that we have that to protect our most vulnerable citizens” she said at the Cabinet meeting. "

"Times are very hard for people at the moment with the cost-of-living crisis and it’s important we keep that support in place.” She added: “I’m glad that, although we’re reviewing it, that will remain in place.”

In a previously reported conversation, council leader, Cllr John Cotton, made clear that significant support would be in place for those who might struggle to pay. “We appreciate how tough things are and will do all we can to protect the most vulnerable,” said Cllr Cotton.

"There are 416,000 households in this city, around 115,000 of them are eligible for council tax support and some 75,000 households don’t pay any council tax at all. We will continue to offer that support and look to extend that support, in part using the discretionary hardship fund.” The exact council tax rise will not be agreed until the authority sets its budget in February.