Taxpayers will be forced to cough up more after Chancellor George Osborne's Autumn Statement - and it will be just a "drop in the ocean" to help slashed services in the city, Birmingham's outgoing leader has claimed.
A two per cent council tax rise to pay for Birmingham's rapidly growing social care bill will raise just £5 million in Birmingham - when the council has been asked to make £200 million budget cuts.
George Osborne will allow councils to place a two per cent precept on council tax bills specifically to fund adult social care - a sector which is coming under increasing pressure due to growing demand and rising costs.
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But Sir Albert Bore, the city council's outgoing Labour leader said the change from the Conservative chancellor would go "nowhere" to solving the city's financial crisis.
This year alone the social care bill has risen by £1.6 million above budget due to higher than expected demand for care and could rise further over the winter.
Sir Albert warned that an expected cut of £200 million over the next two years was still likely, with more pain ahead given the Chancellor's commitment to cutting local government spending by 29 per cent by 2021.
Although he is set to stand down as leader on Tuesday, Sir Albert was following the Autumn Statement closely and warned the Chancellor's social care offer was nowhere near good enough.
Referring to his infamous graph of rising costs of social services and diminishing income to pay for them, he said: "The two per cent is just a drop in the ocean, it will go next to nowhere to close the 'jaws of doom'.
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"In fact, it will raise £5 million, barely enough to cover the added costs as a result of our ageing population, it does not help with the underlying cost pressures.
"When set in the context of the £200 million Birmingham needs to save from its budget over the next two years, this will not have much of a positive impact on our financial position."
On the broader announcement, he added that they would get a detailed breakdown of Birmingham's government grant for 2016 onwards next month but it appeared to be in line with the feared cuts.
He added: "The redistribution of business rates is also somewhat unclear and we are still concerned that, if the money is not re-allocated appropriately, it will increase the unfairness that already exists in local government finance."
Some areas could do well, but in Birmingham - where council tax raises just eight per cent of the authority's total income - the business rates would not cover the costs of services.
Sir Albert said: "One potential positive is the announcement that councils will be able to spend 100 per cent of receipts from asset sales on revenue 'reform' projects.
"Again, we are seeking further details but this could be helpful in allowing the council to deliver on various projects."