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BBC News
07-03-2025
- Politics
- BBC News
Bradford: 10% council tax increase approved amid protest chaos
Plans to raise council tax by 10% were approved at a Bradford Council meeting which was disrupted by Yorkshire Police had to be called to escort demonstrators from City Hall following "chaotic" annual budget meeting had to be suspended just minutes in when protesters in the public gallery began chanting phrases such as "not a penny more".The gathering resumed an hour later and the Labour-controlled council agreed to approve the increase by a margin of six votes. More than 100 people had gathered outside the venue to object to the tax hike before the meeting councillor Jon Wheatley voted against his party's savings plan and said he could not support the rise while urging the government to help underfunded local contentious budget came at a time when Bradford Council's finances remain in a perilous year, the government granted the authority permission to borrow money to fund its the next few years, 20p in every pound of the council's income will go towards paying off to the meeting started soon after Lord Mayor Bev Mullaney had opened proceedings, but before any debate had warnings to stop shouting and allow the meeting to continue were ignored, security were called, with some scuffles breaking eventually issued a dispersal order and removed a dozen people. The council had argued that the increase in council tax would mean less borrowing was needed in the long term and leader Susan Hinchcliffe said the authority was "stuck between a rock and a hard place".Hitting out at opposition parties for offering up no credible alternatives, she added: "If you were truthful you'd admit there is no other way forward. If you vote against this you don't have the guts to tell the truth to the people you represent."Addressing claims that spending on projects such as Bradford Live and One City Park had led to the financial crisis, Hinchcliffe said: "It is children and adult social care that is the pressure, not regeneration."The Green Party was the only party to put forward an alternative budget, which they said would bring the required council tax rise down to 9.4 per cent, only slightly below the proposed when it came to the vote, the Greens all abstained on their own document - while other councillors voted it of the Greens Matt Edwards said Labour had ignored financial warning signs for years, claiming the leadership "fiddled while Rome burns".He added: "Bradford is in a worse financial position that almost anywhere in this country."Although the Conservatives did not present an alternative budget, their finance spokesman councillor Mike Pollard had suggested selling the One City Park development and scrapping plans for a new swimming pool at Squire Lane could reduce the council tax burden on Bradford the Tories were accused by the council leader of being unable to celebrate any investment in Bradford. "You don't want us to succeed," Hinchcliffe Democrat leader councillor Brendan Stubbs said: "Today is another dark day for the people of Bradford."A budget in front of us that heaps huge pressure on residents, a budget that barely papers over the financial disaster this Labour executive has caused. A budget that doesn't even come close to fixing the mess."Rizwan Saleem, from the Independent group, described the tax hike as a "knockout blow after continuous jabs year after year" for thanked councillors for the robust debate, but criticised those who just "oppose, oppose, oppose" and "offer no solutions, no new ideas".She added there was "no room for heroes" in making difficult decisions."We have to be the adults in the room – we have to keep services sustained for local people. Residents expect us to do our duty and not dodge difficult decisions," she it came to the vote, 46 councillors voted in favour of the Labour budget and 39 against, with one abstention. The higher rate taxes will come in from April, with those in a Band D property expecting to pay around £170 a year more on their bills. Listen to highlights from West Yorkshire on BBC Sounds and catch up with the latest episode of Look North.
Yahoo
06-03-2025
- Business
- Yahoo
Will a 10% tax hike help tackle soaring debts?
Bradford Council will vote later on raising council tax by 9.9% as it faces rising costs and debts which are expected to reach £1bn by 2030. It will also consider cuts worth £42m in the next financial year. The BBC examines the reasons behind the council's fiscal woes. The council's borrowing has been prompted by a drop in government funding which it says has seen £350m cut from its budget since 2010/11. Last year, the authority was granted government permission to borrow more, and sell off more of its surplus land and buildings, to keep essential services running and avoid effective bankruptcy. That emergency borrowing is predicted to grow considerably as the graph below shows. A report by the council's senior finance officer also states that rising debts will see the authority owe in excess of £1bn by 2030, rising from less than £400m in 2021/22. Most of the current debt relates to capital projects, schemes such as Bradford Live and One City Park, which have been funded through government grants, loans, or a combination of the two. The report states that it is increasingly relying on borrowing to run core services and 20p in every £1 will ultimately go towards debt repayment in future. The costs of running services is also increasing, especially in children's services. Despite being removed from direct council control and placed under an independent trust, its costs continue to spiral.. Bradford is one of several English councils with debts exceeding or likely to exceed £1bn. Birmingham City Council owes almost £3bn, and others such as Woking, Croydon and Spelthorne have similar debts. Having a large debt is itself not an indication of financial troubles - as larger authorities will inevitably have larger borrowing needs - but in many recent cases, debts have posed serious problems. Across the country, the picture for council finances has been dire for several years, leading to the government announcing a major shake-up of how local authorities are run. Jonathan Carr-West, chief executive of the Local Government Information Unit, said its State of Local Government Finance report laid bare what he said was the "dire situation facing councils across England". "It is no surprise that councils are having to pull all levers to balance their books," he said. "This underlines a fundamentally flawed system for funding local government and one that needs to be radically reformed if we want to avoid an endless cycle of crisis management moving forward." If the 9.99% council tax rise is approved later, an average Band D household in Bradford will face a rise of £170 this year. Other authorities in West Yorkshire plan to raise theirs but only by the normal maximum of 4.99%. Leeds' Band D bills are set to rise by £86 a year and Kirklees by £93. The annual increase will be £85 in Wakefield and £108 for Band D households in Calderdale. Bradford was one of six councils granted permission by the government earlier in the year to propose council tax rises above the usual maximum of 4.99%. The proposed rise has led to a series of protests and political opponents have also argued the hike could have been avoided. Bradford University student Taz Chowdhury, 21, was at one of the protests and said considering a 10% tax rise in one of the country's poorest cities was "egregious". "I don't think it's appropriate or acceptable, and we have to fight back," she said. Maureen Gorst and Jjeneen Sherrington were also among those demonstrating. They said public services were "failing" and "broken" and rising living costs were a worry for everyone. "I am 66, I retired a year ago, and I still have to have two jobs to manage," Ms Gorst said. Ms Sherrington questioned the appropriateness of spending on public art and UK City of Culture in the current economic climate. "I can't afford it," she added of the 10% council tax rise. Sarah Siree also joined a protest with her 10-year-old son and said she was already struggling as a single parent. "There's nothing left at the end of the month. Where do they think people are going to get this extra money from?" Labour council leader Susan Hinchcliffe said reducing reliance on borrowing was at the heart of the authority's financial recovery plans. She said increasing the council tax to 9. 99% as a one-off would actually help "make sure that we save the council taxpayers £111m worth of borrowing over the next 20 years". "We're already trying to reduce that borrowing to make it more manageable, not just for now, not just for next year, but for our children and our grandchildren," she said. She said the tax made a "huge contribution" and the council was between a "rock and a hard place". "We don't want to do this increase in council tax, but we know it's the right thing to do, not just for now, but for the future." Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North. Why do councils go bust and what happens when they do? Town Hall debt levels staggering, MPs warn Protest over plans for 9.99% council tax hike English councils to get £700m top-up next year Council approves £40m cuts citing poor funding Bradford Council
BBC News
06-03-2025
- Business
- BBC News
How will a 10% tax hike tackle Bradford's Council growing debts?
Bradford Council will vote later on raising council tax by 9.9% as it faces rising costs and debts which are expected to reach £1bn by will also consider cuts worth £42m in the next financial BBC examines the reasons behind the council's fiscal woes. Why is Bradford facing high debts? The council's borrowing has been prompted by a drop in government funding which it says has seen £350m cut from its budget since 2010/ year, the authority was granted government permission to borrow more, and sell off more of its surplus land and buildings, to keep essential services running and avoid effective emergency borrowing is predicted to grow considerably as the graph below shows. A report by the council's senior finance officer also states that rising debts will see the authority owe in excess of £1bn by 2030, rising from less than £400m in 2021/ of the current debt relates to capital projects, schemes such as Bradford Live and One City Park, which have been funded through government grants, loans, or a combination of the report states that it is increasingly relying on borrowing to run core services and 20p in every £1 will ultimately go towards debt repayment in costs of running services is also increasing, especially in children's being removed from direct council control and placed under an independent trust, its costs continue to spiral.. Are other councils facing similar problems? Bradford is one of several English councils with debts exceeding or likely to exceed £ City Council owes almost £3bn, and others such as Woking, Croydon and Spelthorne have similar a large debt is itself not an indication of financial troubles - as larger authorities will inevitably have larger borrowing needs - but in many recent cases, debts have posed serious the country, the picture for council finances has been dire for several years, leading to the government announcing a major shake-up of how local authorities are Carr-West, chief executive of the Local Government Information Unit, said its State of Local Government Finance report laid bare what he said was the "dire situation facing councils across England"."It is no surprise that councils are having to pull all levers to balance their books," he said."This underlines a fundamentally flawed system for funding local government and one that needs to be radically reformed if we want to avoid an endless cycle of crisis management moving forward." What will the increase in tax mean? If the 9.99% council tax rise is approved later, an average Band D household in Bradford will face a rise of £170 this authorities in West Yorkshire plan to raise theirs but only by the normal maximum of 4.99%.Leeds' Band D bills are set to rise by £86 a year and Kirklees by £93. The annual increase will be £85 in Wakefield and £108 for Band D households in was one of six councils granted permission by the government earlier in the year to propose council tax rises above the usual maximum of 4.99%.The proposed rise has led to a series of protests and political opponents have also argued the hike could have been University student Taz Chowdhury, 21, was at one of the protests and said considering a 10% tax rise in one of the country's poorest cities was "egregious"."I don't think it's appropriate or acceptable, and we have to fight back," she said. Maureen Gorst and Jjeneen Sherrington were also among those said public services were "failing" and "broken" and rising living costs were a worry for everyone."I am 66, I retired a year ago, and I still have to have two jobs to manage," Ms Gorst Sherrington questioned the appropriateness of spending on public art and UK City of Culture in the current economic climate."I can't afford it," she added of the 10% council tax Siree also joined a protest with her 10-year-old son and said she was already struggling as a single parent."There's nothing left at the end of the month. Where do they think people are going to get this extra money from?" What has the council said? Labour council leader Susan Hinchcliffe said reducing reliance on borrowing was at the heart of the authority's financial recovery said increasing the council tax to 9. 99% as a one-off would actually help "make sure that we save the council taxpayers £111m worth of borrowing over the next 20 years"."We're already trying to reduce that borrowing to make it more manageable, not just for now, not just for next year, but for our children and our grandchildren," she said the tax made a "huge contribution" and the council was between a "rock and a hard place"."We don't want to do this increase in council tax, but we know it's the right thing to do, not just for now, but for the future." Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
