Councils to plan tax for future

Local authorities across the West Midlands will be expected to set their council tax increases years in advance after the Government unveiled plans to announce a three-year budget from 2008.

Government support for councils in England will rise by 4.9 per cent next year, an increase of £3.1 billion, with revenue grants totalling £65.7 billion for 2007/08.

But local government minister Phil Woolas warned councils the Government would not hesitate to cap "excessive" tax hikes and that rises should be limited to below five per cent.

However, the Local Government Association said the sum was not enough, and that the cash boost which was set out last year when two-year finance allocations were announced, was not keeping pace with the rising costs of council services.

Some councils receiving the minimum 2.7 per cent grant increase would face "real difficulties" in balancing the books without cuts in services or above inflation council tax hikes.

An extra £24 million will be winging its way to councils across the Black Country and Staffordshire.

Dudley Council's settlement will go up by 4.6 per cent (£4.7 million) to £106.3 million, Sandwell's by 4.1 per cent (£6.1 million) to £155.3 million, Walsall's by £4.1 per cent (£4.6 million) to £117 million and Wolverhampton's by 2.7 per cent (£3.4 million) to £129 million.

In Staffordshire, the county council will get an extra £4.3 million taking its grant to £121.5 million, while Cannock Chase's allocation will go up by 2.8 per cent to £8.1 million, Stafford's by 2.7 per cent to £8.5 million, South Staffordshire's by 5.9 per cent to £6.9 million and Lichfield's by 2.7 per cent to £5.8 million.

Wyre Forest's grant will rise by 7.3 per cent to £7.7 million, Bridgnorth's by 3.6 per cent to £3.9 million.

By Sunita Patel