Residents braced for further financial pressure with council tax hikes

In the Black Country and Staffordshire the vast majority of councils are expected to sign off on increases of 4.99 per cent - the maximum allowed without a referendum.

But Walsall Council is bucking the trend with a 2.99 per cent rise, after bosses said residents were already under enough financial pressures.

It comes after the County Councils Network (CCN) found 84 councils out of 114 who provide social care and have published their 2023/24 budget proposals plan to raise council tax by five per cent.

Councils can increase council tax by 2.99 per cent plus an extra two per cent which is ring-fenced for adult social care.

Dudley Council’s ruling Conservative group has put forward the maximum rise.

Council leader Patrick Harley said the council had worked to clear a £13m black hole and was aiming to have a surplus of more than £20m in three years time.

He said: “After this year our financial position will be such that we will be looking to minimise any future council tax increases. Next year we will be looking to buck the trend. Hopefully this will be the last time we put up council tax in line with everyone else.”

Staffordshire County Council has already agreed a five per cent hike, meaning Band D properties will pay £1,471.23 to the county council in 2023/24.

Ian Parry, the Conservative-run authority's cabinet member for finance, said: “”We don’t want to put up our council tax a penny more than we have to, but we do recognise that there are demands on us.

“There is a degree of discretion for councils as to whether we implement that increase, but it’s very difficult to not take it and then complain that money is tight. We also have to plan for the years ahead.”

Sandwell Council’s ruling Labour group has also proposed a 5pc hike, which is expected to be signed off next week, while Wolverhampton Council’s proposals are yet to be put forward.

Councillor Mike Bird, Tory leader of Walsall Council, said it would have been wrong to implement the full 4.99 per cent hike with residents struggling to make ends meet.

He said: “After consulting with the residents, the cabinet decided not to implement that two per cent for social care which would have increased it to 4.99 per cent.

“It was the view of individual and collective members of this cabinet that people out there are struggling to pay their bills and therefore that’s where we settled and the right thing to do.

“This is one of the first years I have seen a balanced budget at this point in time going forward not only for the one year but the following year subject to some mitigation and the final settlement being finalised in February.

“I think we’re the envy of many other local authorities who are struggling to balance their books."

Around 95 per cent of councils are expected to hike payments by the full amount, according to Treasury analysis in November.

The Office for Budget Responsibility says nationally this will raise £3.3 billion in 2026/27, rising to £4.8 billion in 2027/28.