Council tax increase 'to attack most vulnerable'

Conservative leader Councillor Wendy Thompson said the "unacceptable rise" was a result of the authority failing to successfully explore other avenues to bolster council coffers.

Her comments came as the proposal was approved for public consultation at a meeting of the council's scrutiny board.

Should the controversial plans go ahead, families on benefits in a band A property would have to pay £220 a year, instead of £120 as it is now.

Until last year, the households affected would have paid nothing at all towards the cost of tax. But in April 2012, the council introduced a charge of 8.5 per cent, which was increased to 12 per cent earlier this year before the proposed 23 per cent charge was put forward.

It follows a Government shake-up of council tax benefits last year, which devolved the power to local authorities to decide how much support to offer.

Finance bosses at Wolverhampton City Council say the increase is necessary in an effort to make £123 million worth of savings over the next five years.

Mrs Thompson said: "It is too easy for the council to blame the government and push this problem onto taxpayers.

"They have ignored areas that could have brought in extra money and instead have resorted to attacking the city's most vulnerable people."

Mrs Thompson accused the council of not supporting businesses in the city and described its 94.8 per cent record of business rates collection as an 'absolute disgrace'.

She added: "There are alternative ways for them to bring in money but they have ignored them."

But her claims were rubbished by members of the controlling Labour group during a heated meeting.

Wednesfield North Councillor Phil Bateman, said: "We have to pull our weight together in the face of a £123m axe hanging over our heads.

"We are suffering, but rather than set an alternative budget the Conservatives chose to sit on their hands."

Finance chief Councillor Andrew Johnson said the authority still hoped to find an alternative to the rise.

As part of the proposal single people aged under 25, or claimants who have a severely disabled partner or child would be protected.

That amounts to 2,200 people, while a further 3,600 income dependent people will have reduced rates.

The plans will go out on a 10-week consultation starting on August 11, giving every resident in the city the chance to propose alternatives.

A final decision will be made in January.