Sandwell council tax set to rise by 3.99 per cent

Sandwell Council is set to raise council tax by 3.99 per cent for 2022/23 – one percent more than its neighbours in Birmingham.

The 3.99 per cent figure covers a basic council tax increase of 1.99 per cent and a two per cent increase ring-fenced for adult social care.

Last year, the Labour-led local authority set a one per cent charge on adult social care, which generated an additional £1.097 million for the provision of care services.

This increase will see Band A properties paying £39.92 more per year, while Band H properties will see an extra £119.77 on top of their bills. Band D properties will pay £59.88 extra.

These sums exclude payments for police and fire and rescue services.

The council confirmed its tax reduction scheme will continue to support residents on low incomes.

It said it is the only West Midlands council to provide up to 100 per cent support for council tax.

The Local Council Tax Reduction Scheme (LCTRS) for 2022-23 was approved by councillors at a full meeting of Sandwell Council on January 18.

Councillor Maria Crompton, deputy leader and cabinet member for finance and resources, said: “Recent years have been hard for many people, and in Sandwell we have worked hard to understand the needs of our communities.

“The LCTRS – one of only a few schemes nationally to do this – protects our most vulnerable, low-income households and tackles child poverty by ensuring people on the lowest incomes pay little or no council tax.

“It will play a key part in helping to break the cycle of poverty, boost outcomes in a child’s early years, and create strong, resilient communities.

“We have had this in place since 2013. Most of the other local authorities require a 15 per cent or up to 30 per cent requirement. We take all of the income for Sandwell residents into account.

“We are assisting roughly 15,000 households with our scheme, and I think that is to be commended.”

The suggested rise is contained in the council’s draft financial plan, published in December following consultation with residents last year.

The rise in expenditure on adult social care reflects the national government’s planned reforms to adult social care services in England.

Annual council tax increases are capped, with any authority wanting to increase over two per cent required to hold a referendum.

Buried in the detail, however, is that local authorities are allowed to increase this by up to five per cent as long as everything above two percent is used for social care.

The rises come as the draft general budget issued by Sandwell Council reveals a £25.3 million budget gap, with the council seeking to find £14.6 million worth of savings.

But the council admitted even with its proposed savings, and including Covid grants and funding of various grants in 2022/23, it would still be a gap of £1.45 million.

One way the council is looking to save money is by reducing grant funding to Sandwell Council Voluntary Organisation (SCVO). Another is redundancies in its finance department.

The council tax reforms are part of a wider draft general budget plan.

The level of reserves – including money for council projects and for unexpected financial challenges –  was at £134 million in March 2021. This is projected to fall to £70 million once Covid related funding has been used during this financial year.

The draft financial plan is going before the council’s budget and scrutiny management board on February 8.

The authority is due to consider and adopt its budget at a full council meeting in March.