Birmingham Council Proposes 5% Tax Rise Amid Ongoing Bin Strike Disruption
Residents in Birmingham are facing a proposed council tax increase of approximately 5% for the upcoming financial year, despite continuing industrial action that has left many households without regular recycling and garden waste collections. The Labour-run Birmingham City Council has unveiled its budget plans for 2026/27, declaring that it is no longer in a state of bankruptcy after closing a significant £300 million budget gap.
Council Leader Declares Bankruptcy Tag "A Thing of the Past"
Council leader John Cotton stated this week that decisive action had been taken to steer the authority back on track financially. "Thanks to the decisive, tough action we took to get the council back on track, the 'bankrupt Birmingham' tag is now a thing of the past," he announced. "This is a significant moment in the council's recovery and is down to the sheer hard work that has been undertaken here in Birmingham by members and officers, supported by government-appointed commissioners."
The proposed tax rise follows previous increases of 7.5% and 10% over the last two years, placing additional financial pressure on households already dealing with service disruptions. Council tax is collected to fund various local services, and the authority maintains it operates a generous support scheme for those struggling with payments.
Ongoing Bin Strike Casts Shadow Over Budget Announcement
Despite the positive financial news, the council continues to grapple with several pressing issues, most notably the ongoing bins strike that began in January 2025. The industrial action, triggered by a dispute between the council and Unite the union over pay and conditions, has resulted in:
- Rubbish accumulating outside homes during peak periods
- Suspended recycling collection services
- Garden waste collections put on hold
- Significant disruption to waste management operations
Striking workers have claimed they face potential pay cuts of up to £8,000, though the council has disputed this figure. Negotiations between the two parties broke down last summer, with the authority stating it had "reached the absolute limit of what we can offer" due to equal pay concerns.
Equal Pay Concerns and Financial Recovery
The council's financial difficulties have been attributed to multiple factors, including Birmingham-specific issues such as the equal pay debacle and problematic implementation of an IT system. Labour politicians have also pointed to funding cuts during previous Conservative governments as contributing to the authority's challenges.
Council leader Cotton expressed disappointment about the unresolved bins dispute while defending the council's position on equal pay. "I'm very disappointed we've not been able to bring the bins dispute to a close," he said. "I'd still very much like a negotiated settlement so the workforce can return to work and deliver a modern waste service that the people of this city want and deserve. But what I can't do is put at risk the progress we've made around equal pay."
Future Investment and Service Improvements
The proposed budget for 2026/27 includes an additional £130 million investment in council services, with particular focus on:
- Creating cleaner and safer streets
- Improving local service delivery
- Driving further efficiencies across operations
- Providing better value for money for council taxpayers
Cotton emphasised his ambition for Birmingham's future, stating: "I'm determined that the mistakes of the past will not be repeated. Now we will step up our work with West Midlands Mayor Richard Parker and Government to invest in our communities, delivering the homes, jobs and services that the people of this city deserve."
The council maintains that despite the proposed increase, Birmingham's average council tax per household remains at the lower end compared to other core cities across the country. The authority continues to operate its council tax support scheme while navigating the delicate balance between financial recovery and ongoing service delivery challenges.
