Council tax set to rise in Birmingham by maximum level

Birmingham residents could see their council tax bills rise by between £34 and £105 this year.

Birmingham City Council is considering raising council tax by 2.99 per cent for 2022/23 – the maximum allowed by central government.

The suggested rise is contained in the council’s draft financial plan, published yesterday (Monday, January 17) following consultation with residents last year.

The plan also features a raft of savings - including an estimated 100 redundancies.

How does the council tax rise compare to previous years?

The council tax rise will not hit as hard as last year, when authorities were able to raise council tax by 4.99 per cent.

The 2.99 per cent figure covers a basic council tax increase of 1.99 per cent and a 1 per cent increase ring-fenced for adult social care.

It will see Band A properties paying £34.85 more per year, while Band H properties will see an extra £104.50 on their bills.

Meanwhile, Band D properties will rise from £1,748.19 to £1,800.46.

What effect will the council tax rise in Birmingham have on the authority’s finances?

The plan puts forward a balanced budget for the year with a financial gap of £33 million by 2025/26.

It provides a net revenue budget of £759.2 million and a capital budget of £1.2bn for 2022/23.

The revenue budget proposals include further savings – made by cost reductions and additional income – of £40.8 million in 2022/23, rising to £107.4 million by 2025/26.

Among the savings are an estimated 100 redundancies.

The plan states: “Beyond 2022/23, council tax increases have been assumed for planning purposes to be 1.99 per cent, but subject to approval annually by the city council.”

What has the leader of Birmingham City Council said about the council tax rise?

Cllr Ian Ward (Lab, Shard End), leader of Birmingham City Council, said: “This is a bold budget for Birmingham that will help us reap the benefits of a golden decade ahead for the city, its people and its businesses.

“Despite ongoing pressures and challenges, as well as those emerging from the Covid-19 pandemic, we know there is a need to protect and modernise services, whilst investing in areas that are rightly a priority for the people and communities of Birmingham.

“Our strategy focuses on early intervention and prevention to level-up life chances, so that the benefits of growth are felt in every street, neighbourhood, and community and we will work in partnership with other public agencies and the private sector to put Birmingham at the very heart of the levelling up agenda.”

The draft financial plan is going before the council’s co-ordinating overview and scrutiny committee on January 21.

The authority is due to consider and adopt its budget at a full council meeting on February 22.

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