Walsall council tax increase will hit 20,000 homes

A discount scheme for people on low incomes is to be cut from April after proposals by the Labour-run council were approved.

Walsall Council insisted it has been forced into the move through Government funding cuts and services faced being further hit if current financial support continued.

A 25 per cent reduction in the subsidy is due to impact on 19,465 householders, many who face paying for the first time. The area hardest hit will be the Birchills and Leamore ward – with 1,763 people impacted on – and the fewest is Streetly with 135.

It was highest of the four options put out to public consultation and the least popular with residents.

It is set to mean a weekly increase of £5.03 for households in band A; £5.87 for band B and £6.70 for those in band C.

It was voted in at Full Council, with 28 in favour, 18 against and nine abstained.

Independent councillor Paul Bott said not all councils had followed the same route. "You are depriving the poor and the vulnerable, you can look to other alternatives," he said.

]UKIP councillor Liz Hazell said: "You have ignored your own consultation. You are going to make this very, very difficult for these individuals."

Democratic Labour councillor Pete Smith added it was the wrong decision and was saddened that people would be further hit in the pocket.

But social care chief, councillor Diane Coughlan, said they needed to consider the need to deliver much-needed services.

In 2013/14 the cost of implementing the council tax reduction scheme was £26.7 million, with the majority funded by a Government grant of £23.9m, leaving the council to meet the £2.8m shortfall.

Walsall Council's funding from central Government drops to £17.8m in 2015/16, leaving a shortfall of £7.7m.

She said: "The only reason for bringing this to council now is because of the devastating cuts imposed on this council by the coalition government."

A council tax reduction on hundreds of empty properties is also being cut to save the cash-strapped council vital funds.

A full discount is currently awarded for the first three months, but this is to be cut to just seven days.

A 50 per cent yearly discount for buildings that require major repairs or structural alterations will also be scrapped.