Government announces Birmingham council tax could go up by 10%
It's because the city's in debt due to equal pay claims.
The government will allow Birmingham City Council to increase council tax this year by up to 10%.
It's after Secretary of State for Levelling Up Michael Gove set out the final Local Government Finance Settlement for 2024-25 in a meeting today.
Normally it would require a local referendum for any increase over 5%.
It's due to the city being massively in debt due to equal pay claims, and a new IT system.
Michael Gove said:
"Birmingham City Council has requested flexibility to increase council tax bills by an additional 5%. The Government has expressed ongoing concern about the significant financial mismanagement at the Council and has launched a five-year intervention to tackle its serious financial and governance problems.
"It is disappointing that Birmingham City taxpayers are having to foot the bill for the Council’s poor governance and decision making.
"Whilst the Government will not oppose this request given the seriousness of the circumstances, any decision to increase council tax is solely one for Birmingham City Council, who should have taken into account the pressures that people in Birmingham are currently facing on living costs.
"The Government is of course conscious of the effect on local taxpayers, particularly those on low incomes, of having to foot part of the bill for these Councils’ very significant failings.
"We have been clear to each of the Councils that in implementing any additional increases, they should take steps to mitigate the impact on those least able to pay."