Households in Sandwell are set to face significant financial pressure as the local authority announces sweeping measures to address a substantial budget shortfall.
Council Tax and Service Charges Set to Rise
Sandwell Council has confirmed plans to increase council tax by 4.99% alongside hiking charges for garden waste collections to cover a £17 million hole in its budget for the 2026/27 financial year. The proposed council tax increase will see the average Band D bill rise by £91 from April next year, solely for the council's services. This figure is expected to climb even higher once precepts for the fire service, police, and West Midlands Combined Authority are added.
For the majority of Sandwell residents, the impact will be particularly felt. Around three quarters of households fall into Bands A and B, which will see annual increases of approximately £60 and £70 respectively for council services alone.
Budget Cuts and Financial Forecasts Revealed
To bridge the financial gap, the council plans to implement more than £8 million in cuts and savings and will draw just over £9 million from its reserves. The council tax increase is projected to generate an additional £7 million, while the increased fee for garden waste collections, scheduled for 2027, is expected to bring in an extra £200,000.
However, the council's medium-term financial plan paints a concerning picture for the future. Budget deficits are forecast to grow substantially, reaching £26 million in 2027/28 and ballooning to nearly £48 million by 2030/31. Annual cuts and savings of between £8 and £10 million will be required until 2031, though these measures will only partially address the escalating gaps.
Specific Savings Measures and Wider Financial Pressures
The council has outlined dozens of specific proposals to balance next year's budget. Five vacant school crossing patrol positions will be scrapped and replaced with permanent zebra crossings to save money.
The recently introduced fortnightly bin collections, which began in September, are expected to yield full-year savings, with £1.3 million anticipated to be saved next year. Other council fees and charges are also set to rise, though specific details are yet to be confirmed.
Further compounding the council's financial challenges, the Sandwell Children's Trust is £20 million in deficit. The council will need to increase the price of its three-year contract with the trust and use council reserves to cover this shortfall. Additionally, huge rises in the cost of adult social care are predicted, with an extra £140 million expected to be spent by 2031.
The council attributes the financial strain to a combination of factors, including inflation, population growth, demographic changes, and historic adjustments, which are predicted to have added an extra £355 million on top of the entire council budget.
