Michael Gove, the Leveling Up Secretary, is considering requests for a significant increase in council tax bills in Birmingham and Somersert. Photo: Dan Kitwood/Getty Images Europe
Households in Birmingham face a 21 per cent rise in council tax, adding £350 to average bills.
Labour-run Birmingham City Council – Europe's largest – has appealed to Michael asking the Government is seeking permission to increase fees to 10 per cent in April and 10 per cent next year.
This comes just weeks after the council announced it had effectively gone bankrupt as a result of equal pay labor. lawsuit filed by workers.
Mr Gove, the Leveling Up Secretary, is considering the request. If he agrees, an increase of 10 percent each year for two fiscal years could result in a potential total increase of 21 percent by April 2025.
The increase will add £342 to the bill for a typical Grade D property and £685 for the most expensive Grade H homes.
Birmingham, which declared bankruptcy in September, will next month will present final plans for council taxation.
John Cotton, the council's leader, said a final decision had not yet been made. He said residents would only be asked for extra money if needed and this could depend on what additional support is received from central government.
Mr Cotton added: “We have asked for permission to increase the council tax on even more.” more than 4.99 percent, but we will not go beyond 10 percent. We know this continues to be a very difficult time for families across the city, and we will do everything we can to protect those most vulnerable.
“We currently have a significant council tax support scheme in place, with around 115,000 households eligible for council tax support. Around 75,000 households do not pay council tax. There will also be support through a discretionary fund to help those in need.”
A government source said: “The scale of Labour's mismanagement in Birmingham is extraordinary. There are staggering levels of debt and wasteful spending. Labor will inevitably have to raise taxes on local people to make up for its failures.
“This is a flashing red warning sign of what a Labor government will do to Britain. More spending, more borrowing, more debt and higher taxes.”
Meanwhile, Somerset Council also said it had asked permission to increase bills by 10 percent because it too was at risk of going bust.< /p>
The Liberal Democrat-led council said the funding shortfall was largely due to an expected £70 million increase in adult social care spending. He is considering saving money by cutting off funding for discretionary services such as theaters, entertainment venues and five recycling centers.
Town halls are usually limited to raising council tax by five per cent without holding a local referendum, and Mr Gove's permission is needed to get around this.
In December he suggested Slough and Thurrock councils should be allowed to increase bills by up to 10 per cent in April after how they declared themselves effectively bankrupt by issuing a section 114 notice and allowing Croydon to raise council tax by 15 per cent.
Nottingham City Council is also waiting to see whether it can issue its bills. Photo: SAKhanPhotography
Like Birmingham, Nottingham City Council has issued a section 114 notice, meaning it cannot balance its books. He is also waiting to see whether he can put his bills forward.
The Local Government Association has warned that one in six councils are at risk of virtual bankruptcy within the next two years. Bradford, Cheshire East and Middlesbrough councils have already said they may have to accept section 114.
Elliot Keck, campaigns director at the Taxpayers' Alliance, said: “It is heartbreaking for taxpayers to pay for councils that cannot balance the books.” books.
“At a time when households are already facing significant financial pressure, increased council tax rises are the last thing they need.
“Councils across the country should take note and take action. their finances before the burden falls on the shoulders of local residents.”
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