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The Labor Council Increases Taxes by 21%, but Reduces Waste Collection and Dims Street Lighting

By Elliefrost @adikt_blog

Street lights are to be dimmed and waste collections will take place fortnightly at England's largest local authority - while council tax will rise by 21 per cent.

The Labour-run Birmingham City Council, which effectively declared itself bankrupt last year, will make £300 million in cuts over the next two years. At the same time, council tax will rise by 10 per cent in April and 10 per cent the following year - increasing average bills by £350.

Residents will face reduced services despite the extra tax bills and the introduction of higher costs for funerals.

The authority also plans to cut back on highway maintenance, putting drivers at risk of potholes.

As a result of the cuts, up to 600 municipal employees could lose their jobs.

The Labor Council increases taxes by 21%, but reduces waste collection and dims street lighting
The Labor Council increases taxes by 21%, but reduces waste collection and dims street lighting

Labor council leader John Cotton said he was "really sorry that we are in this position", adding that they were "very difficult decisions to make".

"This is a big number that we want to get out of the budget and we know clearly that this will have an impact on citizens in terms of the services they receive," he said.

"What we have tried to do in preparing this budget is that we soften the impact on the most vulnerable, so we have made sure that adult social care and children's services are cut by a much smaller percentage."

He added: "There are issues in this council that need to be resolved and I am laser-focused on solving them, but we also see that there is a crisis raging within local government as well."

The Labor Council increases taxes by 21%, but reduces waste collection and dims street lighting
The Labor Council increases taxes by 21%, but reduces waste collection and dims street lighting

The council issued a section 114 notice in September, meaning it could not balance the books, after facing equal pay claims of up to £760m and £80m overspent on an under-fire IT system.

Independent commissioners were brought in by Michael Gove to help run the council, which owes almost £3 billion to lenders.

The two 10 per cent council tax increases - rising to 21 per cent over two years - will add around £350 to a typical Band D home and £700 to the most expensive Band H properties.

The story continues

On Monday evening, Birmingham said it planned to cut £150 million from its budget in 2024/25 and the same amount in 2025/26.

Bi-weekly waste collections will be introduced in 2025/2026, while other savings are expected to occur almost immediately.

The Labor Council increases taxes by 21%, but reduces waste collection and dims street lighting
The Labor Council increases taxes by 21%, but reduces waste collection and dims street lighting

Dimming street lights is expected to save almost £1 million a year, while cuts to highway maintenance could save up to £12 million, depending on the outcome of discussions on a Private Finance Initiative.

Adult social care will face cuts of £23.7 million in the next financial year, while the children, young people and families department will be forced to find £51.5 million in savings.

As part of the major cuts to adult social care, providers will in many cases not receive inflation-related increases. Crisis payments for food, gas bills and white goods such as refrigerators and stoves will be stopped.

Staff will use fewer mobile phones and go back to cheaper landlines, with people wanting to call the council dealing with more voice automation rather than actual human call handlers.

The council hopes that renegotiating children's travel contracts could also save £13 million a year.

There will be a new charge of £24 to deal with rats in gardens and homes. The bulky waste rate will increase from €35 to €45, while the subscription rates for garden waste will increase from €50 to €60 per year. The rates for sports and leisure facilities will increase by 5 percent.

Parking fees will be introduced in parks and the number of rangers will be reduced. More than 30 park maintenance workers will be laid off and the use of herbicides will be phased out.

Less money is spent on graffiti removal, which involves tackling the offending graffiti first and eliminating some street sweepers.

From 2025, all subsidies for cultural projects will be cut and the budget to promote Birmingham as a tourist destination will be cut. The municipality will also try to earn more money by organizing more weddings at the registry office.

Deborah Cadman, the council's chief executive, said a decision on the number of jobs needed would only be made at the end of a consultation period.

The GMB union, which is currently voting members into strike action over "the council's inaction" in resolving equal pay demands, said it now wanted government action to resolve the issue.

'Urgent intervention necessary'

GMB organizer Rachel Fagan said: "Birmingham City Council appears to have a plan to make cuts to local services, but they don't yet have a plan to deliver equal pay.

"The council bosses are doing everything they can to emphasize that they must find savings in the budget to settle historic equal pay demands, yet not a single penny of wages stolen from working women has been returned .

"We urgently need central government intervention in the equal pay crisis, but instead they are trying to pass the costs on to ordinary Brummies."

Robert Alden, Conservative leader on the council, said: "Birmingham Labor kept the details of their devastating cuts under wraps until the last possible moment.

"For a government that promised to be open and transparent, this is unfortunately exactly the kind of behavior we have come to expect from Labor in Birmingham - symbolically underlined by its continued refusal to publish the draft budget and the letters they have sent saying they are not going to create a balanced budget without selling the city's assets.

"The Labor group has been discussing their plan to dismantle the city's services for a year, yet have postponed telling Brummies about their plan until the last two weeks."

Darwin Friend, head of research at the TaxPayers' Alliance, said: "Birmingham residents are facing years of misery as crippling interest rate rises hit already tight budgets.

"For years, council bosses buried their heads in the sand and ignored a growing crisis, even if it wasn't entirely of their own making, and now it's taxpayers who are footing the bill.

"Birmingham City Council must ensure that every penny is spent wisely and that residents do not make sacrifices in vain."


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