'Council tax in Birmingham likely to rise at least 10%'

The local authority faced a great challenge to deal with its budget, Mr Caller said

People living in Birmingham are likely to face at least a 10% rise in council tax, the lead government commissioner at the city council has suggested.

Max Caller described that level of tax increase as "par for the course" at authorities which had effectively declared bankruptcy.

On Tuesday, council leader John Cotton said he would write to the government asking for permission to raise next year's charge by more than 4.99% without a local referendum.

The Labour-run authority issued a section 114 notice in September as it faces the challenge of a £760m equal pay bill and an £80m overspend on an IT project.

It says it needs to save £300m in the next two years.

Birmingham City Council has to sell assets in the next year, the commissioner said

A 10% rise would mean a bill increase of about £195 a year for a band D property.

Speaking to BBC Politics Midlands, Mr Caller said: "Most [councils issuing 114 notices] were allowed to increase council tax by around 10%, apart from Croydon that increased it by 15%. But it requires a formal request and support from commissioners.

"An extra 5% on council tax in Birmingham will raise around £20m."

Mr Caller also said the council would have to identify and sell £500m worth of assets in the next 12 months.

On Thursday it was revealed children's services at the council would face cuts of £57m and the local authority's management budget reduced by 50%, raising fears over job losses.

Union members had lost faith in the council, said Rhea Wolfson from the GMB

The GMB union is currently balloting members on further industrial action.

Responding to comments by Mr Caller which described the ballot as "unhelpful", the union's head of industrial relations Rhea Wolfson said: "How long do the commissioners think it's reasonable to wait until our members do something about the equal pay crisis?"

The council needed to get into settlement talks, she added, stating action would continue until the union saw "meaningful progress".

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