Council tax to rise by 4.99 per cent in Wolverhampton

Residents in the city will pay 4.99 per cent more next year after the increase was confirmed by councillors.

It is the most that councils are allowed to increase the tax by, with a general increase of 1.99 per cent and 3 per cent specifically for adult social care.

Councils across the region are increasing the tax by the same amount ahead of the new financial year, with borough councils in Dudley and Staffordshire announcing the move in recent weeks.

Senior councillors warned there could be a financial black hole of almost £30 million by 2023-2024 due to the current pressure on finances..

Councillor Louise Miles, finance chief for the council, said: "We manage our money well and we can set a balanced budget for 2021-2022 without the need to make significant cuts to services, but this is only possible by raising council tax by 1.99 per cent and imposing the Government’s adult social care levy which is an additional three per cent.

"When the Government works out how much funding to give to councils, they factor into the calculation that we will raise council tax by the maximum amount possible and they expect us to impose the three per cent adult social care levy as well.

"If we didn’t do that, there would be a shortfall which could only be met by cutting essential services.

Clarity

"The report before cabinet next week will set out how we will achieve a balanced budget for 2021-2022, but it will also warn that the council’s financial position between now and 2023-2024 remains extremely challenging and a red risk.

"We are forecasting a deficit of £29.6 million by 2023-2024, there is far too much uncertainty over future funding from Government and of course, we don’t know how long the pandemic will last or what the ongoing social and economic impact will be.

"Greater clarity and a guarantee from Government about future funding for councils would enable us to better plan for the future over the medium and longer term, which is essential as we develop our plans to relight the city after the pandemic."

Councillor Louise Miles, cabinet member for resources, will present a report to the council's cabinet colleagues next Wednesday to set out the budget for the year ahead.

Once approved by cabinet, it will then be debated and voted on at a meeting of the full council on March 3.

Councillor Miles and council leader Councillor Ian Brookfield will also be answering residents' questions about the budget or any other aspect of the council on Facebook and Instagram over the next few weeks. People can submit questions by emailing askian@wolverhampton.gov.uk