'Council tax rise above cap will not happen again'

The leader of Birmingham City Council has said the authority will not need to raise council tax above a government limit in future years.

Taxes in the city will rise by 7.49% from April, after the government intervened to stop a requested 10% hike.

Authorities are normally limited to a 4.99% increase without a local referendum.

John Cotton told BBC Radio WM that now the council's finances were "stable", it would not be put in a position where it will have to break the so-called referendum cap again going forward.

The leader said the government's "generous" financial settlement allowed the council to come in lower than the original plan for a second consecutive 9.99% rise.

He said: "Any rise above the referendum limit is difficult for people. I never wanted to be in the position to be having to put up council tax above the referendum limit.

"I accept that poses challenges and difficulties for people – what we sought to do is mitigate the effects on those that have the least."

"We're continuing with our very generous council tax support scheme... That means the 75,000 poorest households in the city will continue to pay no council tax at all.

"Its important to spread the burden fairly."

When asked whether the council planned to raise council tax past the limit again, Mr Cotton said the council was now in a more stable position.

He said: "Having brought the finances of the council into a balanced and stable position and all difficult decisions we've had to take, we're not going to be put in a position going forward of having to break that referendum cap. I am absolutely clear that is what we need to do."

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