Birmingham City Council's proposal to raise council tax by nearly 10% for the second consecutive year has sparked widespread dismay. Following a tough budget last year, which saw service cuts and a 9.99%hike in council tax, a council report this month highlighted the need for 'savings' of £153 million for the 2025/26 budget.
The full budget details are expected to be disclosed soon, with potential impacts on adult social care, children's services, and city operations. The Labour-led council is considering another 9.99% increase in council tax for the 2025/26 fiscal year.
Council leader John Cotton, discussing the medium-term financial strategy outlined in the report, stated at a cabinet meeting on January 21 that "significant progress" had been achieved in steering the authority towards stability.
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He said: "The progress of the last 12 months will be maintained and the savings for 2025/26 will be backed by detailed and credible delivery plans that have undergone rigorous due diligence.
"I know the commissioners have also rightly recognised the hard work that's been undertaken by colleagues in finance in recent months and I would like to echo those sentiments as well."
Opposition councillors expressed concern over the state of the authority's finances. Robert Alden, leader of the Conservatives at the council, criticised the "total lack of progress" in modernisation and efficiency savings, reports .
He warned that residents could face a "another double whammy" of higher council tax for fewer services in the coming year. Conservative councillor Richard Parkin (Sutton Reddicap) said the recent news "has been nothing short of disastrous, even by their [Birmingham City Council's] low standards."
He called for an urgent public enquiry into the financial situation at BCC.
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Roger Harmer, leader of the Liberal Democrats at the council, criticised the Labour administration, saying: "The truth is this is being done on the back of a much dirtier city with savagely-cut services."
He expressed fear over further cuts, adding: "I can't be the only councillor that's really noticed a change in the tone of emails I get from residents really, really concerned about the state of the city."
"It's only going to get worse."
Coun Karen McCarthy, the cabinet member for finance, has admitted that significant work remains on the council's recovery but emphasised that protection of critical services has been a top priority. "Modernisation and transformation processes are proceeding across the board," she noted.
On the issue of the nearly ten per cent rise in council tax, she said "The opposition really can't have it both ways at once. You can't have made hay with that figure for a year and then act surprised when that's what appears in the report.
"We have now a government at national level that understands local government," she added. "They're not in the position to come riding over the hill with a sack of gold to sort out all our problems but at least now we're having healthy conversations with them about the support that can be provided."
Coun Rob Pocock, who is responsible for overseeing the council's transformation, warned that there are still considerable challenges ahead. "Another tough budget has to be agreed and delivered," he said. "Much remains to be done."
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Coun Cotton told the meeting that the council's administration was "working through the implications" of the provisional local government settlement to ensure it made the "best possible use of those additional resources". The council approved last year's unprecedented budget amidst issues including Birmingham-specific factors, such as the equal pay debacle and the disastrous implementation of a new IT and finance system, as well as the rising demand for services and funding cuts.
The political blame game has seen figures such as Coun Cotton blaming the previous Conservative government while Tory politicians have highlighted the mistakes made by the council's Labour administration.
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