City’s council tax to rise by almost 5%

Council tax will rise by almost 5% in Wolverhampton, it has been confirmed.

Residents in the city will pay 4.99% more next year after the increase was confirmed by council bosses.

City of Wolverhampton Council said that in order to balance the books and avoid cuts to essential services, it is proposing to increase council tax by 1.99% and levy an additional 3% to pay for adult social care.

The authority’s finance chief Louise Miles 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% and imposing the Government’s adult social care levy which is an additional 3%.

“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 3% 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.

“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 £29.6m 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.”

Cllr Miles will present a report to cabinet colleagues on Wednesday, setting 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.