West Midland Mayor's tax rise plans thrown out by Labour councillors

Andy Street initially wanted to raise his council tax precept by £12, but settled on £10.80 for each Band D property in a bid to pay for the running of his office and his transport plans.

But the Tory Mayor's proposals were thrown out by the West Midlands Combined Authority (WMCA) cabinet, which includes five Labour council leaders and two Conservatives.

The Labour leaders – including Steve Eling from Sandwell Council and Sean Coughlan from Walsall Council – all voted against the plans.

Wolverhampton Council's Roger Lawrence was away and did not vote.

However, his replacement, Councillor Pete Bilson, voted down the plan – a move that prompted surprise in some quarters after the WMCA agreed to prop up the city council's Interchange project, which has gone more than £30 million over budget.

The cabinet, led by Coventry City Council leader George Duggins, are thought to have opposed the rise in protest at Government cuts to town hall budgets.

Councillor Coughlan told the Express & Star: "This was the first vote in a process that will see consultation and scrutiny, followed by a final vote in February.

"We were minded that as part of the consultation the public might say they don't want to put tax up, and on this occasion we agreed not to support the proposal.

"However, nothing is final and we do not want to pre-empt the decision of the consultation."

The £10.80-a-year increase has been proposed to raise £7.5 million to run the WMCA.

If it is not approved, the Mayor could be forced to divert funds from other projects to cover the costs.

Parties on all sides believe that a compromise can be reached before next month's final vote.

A WMCA spokesman said: "The report to the combined authority board was the first formal stage of a scrutiny and consultation process that will run until February 9 when the board is scheduled to make the decision on the proposed budget.

"Options are being considered in light of the boards decision and further discussions on the draft budget will be held with WMCA members, the business community and other stakeholders in the run-up to February 9."

Mr Street, who was elected as the region's first Metro Mayor last year, recently described the figure as 'a relatively small amount' and said it was vital for the region's economic prosperity.

"We have said we are going to invest in our transport and bust congestion," he said. "We have to actually have the capital investment available to do that."

The council tax rise is set to come into force from April, along with a £12-a-year spike in the policing precept put forward by West Midlands Police and Crime Commissioner David Jamieson.

It means taxpayers in the Black Country could see their bills spiral, with all four local authorities considering further increases.

Walsall Council has proposed a hike of 4.99 per cent, which includes 3 per cent ring-fenced for social care.