Wolverhampton Council tax to go up 3.99 per cent EVERY year for four years
Council tax in Wolverhampton is set to rise by almost four per cent in each of the next four years, council bosses have revealed.
The city council's cabinet is set to sign off on a 3.99 per cent rise for 2016/17 next week, with bosses confirming that the same increase is likely every year until the end of 2019/20.
It comes as the authority battles to meet government cuts to funding described as 'mind-boggling' by the council's finance chief.
Since 2009/10 the council has seen £175 million slashed from its government grant, with cuts of £37.4m due over the next year as part of £54m savings to be found by 2019/20.
Last week it was announced that Wolverhampton council would not receive a penny of a £300m support scheme to offset the effects of cuts on local authorities.
The council's finance boss Councillor Andrew Johnson, said: "The government funding assumption is that we increase council tax by 1.75 per cent in each year for the period of this Parliament on top of the two per cent for adult social care.
"We had no additional funding from the local government settlement so we are left with little choice but to increase council tax by the maximum amount allowed.
"We would rather not raise council tax but with £54m in cuts still to be found over the same period it would be impossible for us not to take this course of action.
"The scale of the cuts we have faced is mind boggling, but we have put in a long term plan to make sure we can balance the budget without having to dip into reserves."
The 3.99 per cent annual increase is made up of a two per cent adult social care precept and a 1.99 per cent general increase – the maximum allowed without a referendum.
It means an annual rise for residents in Band A properties of around £36 a year and for those in Band D of around £54 a year. The majority of Wolverhampton's households are in Bands A and B.
As part of its efficiency strategy the council has laid off 1,200 staff, 900 who left as voluntary redundancies, with a further 800 redundancies due by 2019/20.
Meanwhile plans to charge for the use of public toilets have been delayed for a year after the idea received a negative response in the budget consultation.
West Park Conservatory and Bilston Craft Gallery will continue to run as they are while the council explores ways to make both venues commercially viable.
Councils in Dudley, Sandwell and Walsall are set to bring in 3.99 per cent council tax increases over the next year, while Staffordshire County Council has agreed a rise of 3.95 per cent.