Final budget for next year approved - including increase in crucial transport fund
West Midlands Combined Authority’s (WMCA) final budget proposals for the forthcoming year have been given the go-ahead.
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Members of the WMCA Board met on Friday (February 7) to discuss the plan which includes a rise in the amount councils pay to a crucial transport fund and confirms no precept for taxpayers.
The proposals were approved unanimously and without discussion during the session at Birmingham City Council.
The Transport Levy, which all seven member councils contribute too, has been increased by a total of £3.6 million from £119.35 million to £122.94 million.
A report to the board said the increase “seeks to address some of the pressures within transport” caused by issues such as inflation, loss of funding and decisions not to increase it previously.
Around 76 per cent of money raised from the Transport Levy is used to pay for the English National Concessionary Travel Scheme, local policies that provide free or half-priced bus, train and tram travel for those who qualify, as well as funding subsidised bus services and accessible transport.
Legislation allows WMCA to raise money for transport initiatives through a levy on Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton councils.
If approved, Birmingham will go from paying £46.78 million to £48.09 million in 2025/26, Coventry will go from £14.37 million to £14.88 million, Dudley will go from £13.13 million to £13.47 million, Sandwell from £13.91million to £14.33 million, Solihull from £8.8 million to £9.02 million, Walsall from £11.56 million to £11.91 million and Wolverhampton from £10.81 million to £11.23 million.
Members also ratified a decision not to add an extra burden on West Midlands taxpayers by confirming there won’t be an introduction of a mayoral precept in 2025/26.
At a WMCA overview and scrutiny meeting last month, Mayor Richard Parker said: “At this stage, I’ve got no intention of levelling a precept on the constituents of the West Midlands. I believe people pay enough taxes in this region.”
The fees that constituent and non-constituent local authority members pay into the WMCA will also be kept at the existing levels.
And the plans will see a £40,000 increase in the Mayoral office budget due to staffing costs, although this is five per cent lower than previously anticipated.
