Birmingham has no choice over tax rise - mayor

West Midlands Mayor Andy Street said the city council had to raise its tax significantly

Birmingham City Council has “no choice” but to raise council tax significantly, according to West Midlands Mayor Andy Street.

He was speaking after Labour council leader John Cotton told the BBC the council had asked the government for permission to raise council tax by up to 10% each year for the next two years.

The council has a £300m gap in its budget over this period – and problems have been compounded by a £760m equal pay bill and an £80m overspend on an IT project.

The Conservative mayor accepted council funding had fallen under successive Tory governments – but Mr Street said the financial situation in Birmingham was entirely down to the Labour leadership.

Speaking to BBC Newscast he said: “What’s put Birmingham into this position is the equal pay claim, three quarters of a billion, that is solely because of the political decisions that Birmingham took and their failure over the last five years to recognise the consequences of that.”

Asked if the council was right to ask for government permission for the huge rises, Mr Street said: "They've got no choice. They've got no choice."

Mr Cotton had previously apologised to the people of the city over the crisis and the council said it was "committed to resolving historic equal pay issues".

The council's leader John Cotton said the authority had asked the government for permission for the large planned tax rises

Following news of a potential 21% overall tax increase over the next two years – something that could mean roughly £400 a year on a Band D property’s bill by April 2025 – the Conservative opposition called for the Labour council leader and his cabinet to resign.

Councillor Ewan Mackey, Conservative group deputy leader, told BBC Radio WM: “If you’re the one making the decisions, the buck stops with you ultimately. And you have to be held responsible for the decisions you make.”

But Mr Cotton told the BBC he was committed to seeing the challenges through: “I’m Birmingham born and bred, I’ve never lived anywhere else, I’m absolutely profoundly committed to this city.”

The chief executive of the council, Deborah Cadman, also insisted she would remain in post despite what lay ahead – including significant job cuts with about half of the council’s management budget set to be cut.

Asked if she has thought about standing down, she said: “Absolutely not. This is the hardest job I’ve ever done but it is also a job that I’m completely committed to.”