Mayor's council tax spike scrapped for 12 months
The West Midlands Mayor's plans to increase council tax have been scrapped for 12 months following opposition from Labour councillors.
Tory Mayor Andy Street wanted to raise the council tax precept by £10.80-a-year for Band D properties to fund transport plans and pay for the running of his office.
But he has agreed to ditch the proposals for 2018-19 after council leaders on the West Midlands Combined Authority (WMCA) – including Roger Lawrence and Sean Coughlan – argued that residents were 'paying enough tax already'.
The WMCA, which covers Dudley, Sandwell, Walsall, Wolverhampton, Birmingham, Coventry and Solihull, has agreed to revisit the scheme in 2019-20.
It is set to agree the revised budget for this year at a meeting on Friday.
The move has prompted criticism from the combined authority's overview and scrutiny committee, which said in a report: "The current situation where the combined authority board refused to agree the proposed Mayoral Budget does not resonate with the level of partnership and collaboration required for the combined authority to achieve its strategic objectives."
The committee has recommended that the next budget is brought forward to September 'to allow sufficient time for open discussion and development of proposals'.
The tax increase was proposed to raise £7.5m. The Mayor will now be forced to divert funds from other projects to cover the costs.
A report to the board says cash from the WMCA reserves will be used to fund the running of the Mayor's office.
And 'Network Resilience' costs that were to be funded by the precept will now be funded through an increase in the Transport for West Midlands Levy.
Council leaders told the Mayor that scrapping the precept would 'reduce the burden on hard pressed households in the West Midlands' at a time when a number of local authorities are already considering hefty rises.
Walsall Council and Sandwell Council have both proposed a hike of 4.99 per cent, which includes 3 per cent ring-fenced for social care.
The option of a Mayoral precept is likely to be brought back for the 2019-20 budget. Council leaders have said: "The combined authority is minded to support a Mayoral precept in 2019 – 2020 subject to agreement on the detail of the Mayoral precept."
Councillor Ian Ward, the leader of Birmingham City Council, said: "We’ve negotiated a compromise and will look again in 12 months."
West Midlands Police and Crime Commissioner David Jamieson has proposed a £12-a-year spike in the policing precept to make up for Government funding cuts.
