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Birmingham Passes £4.4bn Budget With 4.99% Council Tax Rise After Narrow Vote

The approval averts risk of further intervention by meeting the legal deadline to set council tax.

Overview

  • The budget passed 40–37 after a reconvened meeting, with Labour securing enough members in the chamber following last week’s adjournment.
  • Labour accepted Liberal Democrat amendments that add £25m for road repairs, expand youth services, increase library funding by £1.1m, boost street cleaning by £1m and double councillor community funds to £20,000.
  • Band D bills will rise to £2,353.17 from April, about £116 more for 2026/27, with Fire and Police precepts noted as subject to formal approval.
  • Council leader John Cotton said the plan closes a £300m gap and restores £130m to frontline services, presenting it as a step away from Birmingham’s 2023 financial crisis.
  • Opposition leaders criticized the process and outcomes, as Conservatives called it higher taxes for fewer services while Liberal Democrats claimed their concessions deliver tangible local improvements and signal leadership ambitions.