Council tax in Birmingham to rise by almost five per cent - see how each Band is affected

Council tax in Birmingham is going up by the biggest rise allowed – adding more than £90 to a Band D bill in the next financial year. The 4.99 per cent increase for 2023/24 will also be repeated the following year.

It means residents in a band D property – currently paying £1,808.26 per year – will see their bill increase by £90.23. Those living in a council tax band B property will see their bill increase by £70.18, while a person living in a band G property will have their bill increase by £150.38.

All figures include the adult social care precept. The rise is made up of a general increase of 2.99 per cent and a two per cent increase in the social care precept – a portion of council tax which allows councils to provide social care services to adults.

The 4.99 per cent figure is the most councils can hike tax bills without a referendum. The budget will be discussed at the council’s cabinet – where senior councillors meet to decide on policy – before being debated for final approval at a meeting of Birmingham City Council on February 28.

Last October, the Local Democracy Reporting Service (LDRS) told how the council was reviewing savings in order to “keep financial viability”, according to a cabinet report .

The report said the expected budget gap for the period 2023/24 would be £80 million, rising to as much as £146.5 million in 2026/27. It was originally recorded at £33 million in February this year, with the council undertaking “sound financial management” to close the reported budget gap.

Some budget gaps have been plugged by the authority using its reserves – referred to as the council’s savings account. But the council admitted the war in Ukraine, high inflation, coronavirus, and the aftermath of the Liz Truss budget made it “highly unlikely a number of budgets, either income, expenditure or savings plans, will return to their pre COVID-19 levels”.

In particular, the council is seeking to save £5.5 million by reducing its reliance on bed and breakfast as temporary accommodation and increasing capacity in alternative accommodation, including the development of “hostel accommodation in surplus council properties”.

The council is also looking to create a public hub “capable of responding early to the needs of citizens,connecting them to wider assets and resources within the locality andacross the city” – reducing spending by £2.5 million. Councils are not immune from rising costs.

In December, the council overspent its revenue budget by £11 million. It faces an increase of £18 million for energy bills, while local schools face a total increase of £6 million.

The council has spent around £6 million on its ‘Help4Brum’ initiative – aimed at helping vulnerable households seek support and financial advice during the cost-of-living emergency.

Adult social care supports around 12,000 Brummies at any point in time – providing around 20,000 packages of care. It remains the council’s largest area of net spending at around 43 per cent.

The budget includes the introduction of a “robust rolling budget setting process”, – partly due to uncertainty over inflation rates – but designed to provide an earlier view of future budget pressures so the council can act with “transformative rather than reactionary measures”.

Council leader Coun Ian Ward said: “Birmingham is a great city, but we also face significant challenges, and this plan outlines our strategy to tackle unemployment and low skill levels, health inequalities, the climate emergency, violent crime, homelessness, and other social problems.

“Despite being overlooked in round two of the government’s Levelling Up Fund, we continue to make a compelling case for Birmingham to be at the very heart of the Government’s levelling up agenda.

“We will work in partnership with other public agencies and the private sector to improve the lives and life chances of people from across the city.”