Sandwell council tax could rise as funding cut by £3m

Council tax could rise for Sandwell residents next year, after it emerged government funding to the borough would be cut by £3.2 million.

The Government has announced it will be scrapping the council tax benefit scheme and creating a new local council tax reduction scheme, which will leave Sandwell worse off.

Borough finance boss Councillor Steve Eling has said the latest cut, along with cuts which see the authority having to save £75m by 2015, means he cannot rule out an increase in council tax next year.

Councillor Eling said: "I am not looking to increase council tax in order to fill that hole, we are looking to be able to deal with that without increasing council tax, but I cannot rule out a council tax increase for next year. There is going to come a time where we will have to have a council tax increase or we are going to have to start cutting things."

From next April the Government is abolishing the current national council tax benefit scheme and replacing it with local council tax support schemes designed and run by councils.

Government funding to support the new local schemes will fall by 10 per cent, which is a £3.2m cut for Sandwell. Of this, £2.8m will need to be met by the council and £400,000 by the fire authority and police.