Levelling up secretary Michael Gove has approved Birmingham City Council’s request to increase council tax by up to 10% without a local referendum.
The council asked in January for a special dispensation to raise taxes by 10% for the next two years – adding an additional £400 a year on a Band D property by April 2025.
The local authority was forced to declare itself effectively bankrupt in September and is facing a £87.4m overspend for 2023/24 and a budget gap of around £300m by 2025/26.
The Government has also granted councils in Thurrock, Woking and Slough permission to raise council tax by 10%.
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