Solihull councillors engaged in a heated debate over impending council tax increases that will impact local residents. Residents face a 4.99 percent rise this year as the cash-strapped council works to balance its legally required budget.
Background on Financial Pressures
The council has implemented strict measures, including controls on non-essential spending, vetting of all recruitment, and a paid resignation scheme that reduced staff numbers last year.
Andy Felton, the council’s director of resources, warned that next year’s budget process may require exceptional financial support to allow council tax hikes of up to 9.99 percent in both 2027/28 and 2028/29.
Key Exchanges at Cabinet Meeting
During the February 12 cabinet meeting, Conservative council leader Karen Grinsell highlighted the severe medium-term financial challenges. “The council is facing an extremely challenging medium term financial outlook,” she stated. “That has been driven by national financial funding reforms, ongoing demand pressures and structural issues within the local government finance.”
Grinsell criticized the fair funding review, noting, “to be honest I don’t see it as very fair, certainly not to Solihull. We have been disadvantaged.” She emphasized the primary focus remains on a robust budget for 2026/27.
Green Party group leader Councillor Max McLoughlin pointed to long-term trends. “Local government financing has been on a downward trajectory,” he said. “This is not something that has just happened this year – there has been a real terms cut happening for a long time. It seems like a ‘Hail Mary’ in terms of let’s just sort this one year out, and pass this over to officers.”
Grinsell responded, “We are not trying to hide anything, it is all open and transparent. What you have in front of you is a plan to balance the budget for 2026/27 whilst acknowledging there will be issues in the following two years.”
Liberal Democrat group leader Councillor Ade Adeyemo questioned the approach: “Concentrating on one year – are you distancing yourself from the other two years?” Grinsell replied, “No, I’m not distancing from the other two years at all.”
Cabinet member Councillor Tony Dicicco added, “We have been penalised by various governments for doing the right thing, keep council tax low. Now we are going to have to unpick the mess the government has put us in. What the government has done to us over the last five to 10 years has been disgraceful.”
Following the tense discussion, Grinsell stressed practicality: “You have got to deal with the here and now. The director has given his opinion, we will work on the budget for future years and then we will make a decision next year on what council tax will be. We will continually try to avoid council tax increases where we can.”
The cabinet approved budget recommendations, including the 4.99 percent increase this year. The full council will meet on February 26 to finalize the budget.
