Birmingham City Council is under pressure to improve its council tax collection rate as residents face another major bill increase. With financial struggles continuing, critics warn that failing to recover unpaid tax could make the situation worse. The latest rise means some households will pay over £2,200 a year, while one in ten council tax bills were left unpaid last year.
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00:00Birmingham's financial struggles are well documented, but as residents brace for a further
00:077.5% rise in council tax this April, concerns are growing over how much the council is actually
00:12collecting. A recent report found the collection rate for the current financial year sits at
00:18around 75%, falling short of the council's target of 78%. Some critics say this raises
00:25serious questions about financial stability. One in ten people's council tax wasn't collected last
00:30year, something opposition councillors have called appalling. They say the trend getting
00:35worse is a major concern, warning that if payments aren't recovered, residents could
00:40be hit with even bigger bills in the future. The city remains in crisis after years of financial
00:45mismanagement, legal issues and service cutbacks. External auditors have pointed to costly mistakes
00:51in budget planning, a disastrous RT system rollout and the ongoing AblePay dispute.
00:58Many LIBOR councillors blame years of central government cuts, arguing local authorities of
01:03all political backgrounds are struggling. Some households benefit from council tax support,
01:08which helps cover costs for a quarter of the city's residents, but for those who don't qualify,
01:13the lightest roys means band D households will soon be paying over £2,200 a year, up from just
01:19over £2,000 this year. The increase will take effect from April, adding to the financial strain
01:25many already feel. With Birmingham's finances under scrutiny, the focus is now on improving
01:30collections, while managing a budget already stretched to its limits. Residents are left
01:36wondering whether the council can balance the books, or if more cuts and higher taxes lie ahead.