City U-turn over council tax increase
‘We listened’, claims Labour group leader following anger over bills
ABACKLASH over a huge rise in council tax bills has prompted a rethink by Birmingham City Council.
The Labour-run authority had planned an inflation- busting £72 increase a year for a band D property.
However, council leader Ian Ward revealed this week the increase would now be limited to £57.
Cllr Ward said: “People are becoming more concerned about council tax increases in recent years being not only above infla- tion, but also being carried out at a time when people have had pay increases well below the rate of inflation, if they’ve had one at all.”
The Tory opposition group slammed Labour’s record, saying bills had risen 20 per cent in six years.
BIRMINGHAM City Council leader Ian Ward says the authority has listened to residents who have had enough of massive tax increases
The authority is to cut its planned council tax rise, after a backlash from residents sick of inflation-busting increases.
The Labour-led council launched a consultation in December about plans to increase bills by £71.90 for a band D property, an increase of just under five per cent.
But council leader Councillor Ward said it had now been decided to limit the rise to just under four per cent. This is around £57.49 a year.
He said: “The reaction we’ve got back is that people are becoming more concerned about council tax increases in recent years being not only above inflation, but also being carried out at a time when people have had pay increases well below the rate of inflation, if they’ve had one at all.
“So in response to that we are actually decreasing our council tax increase from the figure that we consulted on.”
The proposed rise includes a three per cent precept specifically for social care, which the government is encouraging local councils across the country to impose.
There will also be 0.99 per cent increase in council tax for general services – down from the 1.99 per cent increase previously planned.
Cllr Ward said concern about the impact of council tax increases on residents explained why he, along with other local council leaders, had blocked West Midlands Mayor Andy Street from imposing a new £12-a-year precept on council tax bills.
“What we are increasingly getting back from members of the public is they are becoming more concerned about council tax rises than they are about further budget cuts,” he said.
“It becomes very difficult to then agree a further increase for a mayoral percept.
“And that’s what the mayor’s proposition has become a victim of.”
In theory, councils can choose whether or not to impose three per cent increase for social care. However, Cllr Ward said they did not have any choice because it was the only way to raise money that was essential to keep services running.
“All the Government’s numbers are based on the assumption that authorities with responsibility for social care take that precept,” he added.
“They have been increasingly passing responsibility for the gap that exists in local government funding on to local taxpayers.”
The government has given councils permission to increase tax bills by almost six per cent this year, including the social care precept.
Authorities can propose an even bigger increase, but would need to ask local residents to approve the tax hike in a referendum.
Birmingham is attempting to cope with cuts in funding from central government which come at the same time as demand for services is increasing.
It has said it expects to have to make savings of £111 million per year by the end of the next four year period.
West Midlands Police and Crime Commissioner David Jamieson has confirmed that the police precept,
People are becoming more concerned about council tax increases.
which is added to council tax bills, will increase by £12 in April, from £116.55 a year for a band D property to £128.55 a year. Birmingham City Council is holding elections on May 3. Unusually, every seat in the city will be contested, rather than just a third of seats as usual. Tory opposition leader Cllr Robert Alden said: “Since 2012 Labour have put up council tax by 20 per cent yet we have record levels of rubbish left on our streets and a city blighted by a failing refuse service. May 3 gives residents the chance to send the Labour Council a message that rocketing council tax while delivering failing services is not good enough for Brum”.
Council Leader Ian Ward
WANTED: 101 community heroes to stand for election. A new political movement is being launched with the aim of shaking up Birmingham City Council at the local elections in May.
The People Power Brum campaign aims to put local power in the hands of citizens by pushing a crop of independent candidates in this year’s council elections.
It was founded after community organiser Sunny Sangha gave a speech on a concept called ‘liquid democracy’ at a TED talk event in Birmingham last October. Its aim is to find an independent citizen candidate to challenge for each of the council’s 101 seats on May 3 in an attempt to smash the political party system.
Mr Sangha said: “Many people are disaffected with politics, at all levels.
“It’s telling that the usual turnout at Birmingham City Council elections is around 30 per cent.
“People feel distant and disengaged from the council, despite being directly affected by the decisions being made there.
“We feel this can be different, and we want to help build a city where everyone is included and invited to shape things. The idea of replacing political parties with independent ‘People’s Councillors’ has already been tried in Frome, Somerset, and has worked very well since 2011. “We believe Birmingham is ready for this idea, and the challenge of scaling it to our own city of 1.1 million people is really exciting. If successful, Birmingham would really take its place as a global pioneer in a new form of peoplepowered politics.” Mr Sangha, a former pupil of King Edward’s School, Edgbaston, who works for UK charity Migrants Organise, believes local government could be better run by ordinary citizens. He wants to see a break from playground party politics.
A group of volunteers, based at the Impact Hub in Digbeth, will be assessing and recruiting potential candidates at a series of meetings starting on February 12.
The May 3 election will be the first time in 14 years that every single council seat is up for grabs on the same day, known as ‘all up elections’, and could lead to a major shake-up in the city’s political balance.
There are currently 120 seats, with Labour holding 79, the Conservatives 29, the Lib Dems 10, one independent and one seat is vacant following a resignation.