Council tax in Birmingham is set to rise by just under 5%, affecting residents differently depending on their area. During a turbulent budget meeting, the council approved a 4.99% increase for the 2026/27 fiscal year, which will take effect from April.
This hike comes despite ongoing disruption from a long-running bins strike and follows two significant council tax increases in recent years—around 10% and 7.5%—imposed after the council’s well-publicized financial crisis.
Government regulations limit council tax rises to 5% for cities like Birmingham unless special permission is granted to exceed that cap without a public referendum, as has been the case for Birmingham in recent years.
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For a typical Band D property, council tax will rise from £2,237 to approximately £2,353.17, an increase of just over £116 annually. Additionally, residents in two specific parishes face extra charges. In New Frankley, the parish precept for a Band D home increases marginally by 10p, from £34.66 to £34.76. Meanwhile, in Royal Sutton Coldfield, the precept rises by £10—from £59.96 to £69.96—reflecting a 16.68% increase. This funds the Conservative-run Royal Sutton Coldfield Town Council, which provides several local services.
Council leader John Cotton emphasized that Birmingham is moving past its “bankruptcy” era after bridging a £300 million budget gap through tough service cuts. “Over the last two budgets, we were forced to set council tax increases above the threshold,” Cotton said. “We did so with heavy hearts. Last year, I promised there would not be a third such rise, and I have kept my word.”
He added, “In 2026/27, the council is back in line with mainstream local government, proposing a 4.99% rise for the majority of Birmingham households. Despite recent increases, Birmingham’s council tax remains below the average of core cities. With 82% of homes in Bands A, B, or C, most households will see an increase of less than £2 per week. We’ve also protected our council tax support scheme for vulnerable residents, meaning a quarter of households receive help, and around 70,000 families pay no council tax.”
Opposition councillors criticized the Labour council for ongoing problems. Conservative leader Robert Alden accused Labour of bankrupting Birmingham and questioned their claims of fixing the council. Tory councillor Deirdre Alden lambasted the council’s handling of the bins strike, describing the city as “piled high with rubbish and litter” and plagued by rats.
Liberal Democrat councillor Roger Harmer warned that full recovery from the financial crisis remains a long way off, citing key challenges like the bins strike and Oracle issues. Green Party councillor Julien Pritchard contested Cotton’s optimism, pointing to neglected neighborhoods still suffering financially. Independent councillor Jane Jones sharply criticized the city’s reputation, calling it a “cesspit of Europe” and a “laughing stock” internationally.
Striking bin workers have claimed they face potential pay cuts of up to £8,000, a figure the council disputes. The financial challenges facing Birmingham have been exacerbated by issues such as an equal pay dispute and problematic IT system rollout. Labour councillors also highlight the impact of previous government cuts.