The Birmingham City Council declined to permit new 9.99% tax increase – bbc.com

The Birmingham Municipal Council was denied permission to increase its council tax by 9.99% next year after the government’s request for the figure was rejected.

But the authorities were allowed to collect it by 7.5% in April before he had to hold a local referendum in order to seek approval for any larger increase.

The Council said it earlier will not be able to determine a legally balanced budget Without a 9.9%approval request.

Authority leader John Cotton said the government had agreed to the progress they had reached to allow them to reduce the planned increase in the Council tax.

Under normal circumstances, authorities can only increase the Council tax by only 4.99%without conducting a local referendum.

Along with its decision to raise taxes, the government has also announced an increase in funding it provides to local authorities, which will be raised by 6.8% compared to the financial year 2024-25.

In a written statementRayner said that there were a record number of advice demanding additional increases in council taxes.

“We agreed with a limited number of requests and in any case we did not agree with the requested full amount,” she said.

“Where we have agreed, this is only for the advice among the lowest levels of council tax and where we expect, even after these increases, residents will still pay less than average compared to such advice.”

The Birmingham City Council declared itself an effective bankrupt in October 2023 as it was struggling to deal with equal salaries claims initially estimated at a total of 750 million British pounds.

The commissioners appointed by the government have been introduced and since then residents in the city have already monitored services redundancies with an increase in the tax on the Council of 10% for the financial year 2024-25.

D -Cotton said conversations with the current government were constructive.

“After extensive conversations, we agreed that Birmingham had made sufficient progress in the last 12 months to reduce the planned increase in the Council tax increase,” he said.