WEST Midlands taxpayers will have to pay extra council tax to fund the proposed mayoral budget.
Mayor Andy Street’s proposed £178.4million budget for the coming financial year will be discussed by the West Midlands Combined Authority (WMCA) board at a meeting on Friday January 12.
The draft budget also proposes a £12 increase to the annual council tax bill for average band D properties which the authority hopes will raise a figure of £7.5million.
The combined authority insists this represents “superb value for money”.
Under the precept, £2 would go on operational running costs of the mayoral office while £10 would be used to implement congestion-busting measures focused on cycling, park and ride services and Sprint rapid-transit using road-running tram-style vehicles.
The £178.4million figure would see a contribution by the constituent member authorities – Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton councils – totalling £118 million.
The region’s councils agreed to form a combined authority with an elected mayor in return for the transfer of powers and funding from Whitehall to the West Midlands as part of the government’s so-called devolution policy.
The proposed budget would ensure the £36.5million being given to the region by government this coming year is spent on infrastructure projects such as Midland Metro, Sprint and developing skills – as envisaged in the first devolution deal.
Coun Izzi Seccombe, WMCA lead member for finance and investment, said: “Since the launch of devolution by the government the constituent and non-constituent members of the WMCA have worked hard to establish an organisation that is delivering real benefits for the West Midlands.
“This has resulted in substantial inward investment into the region of public sector money that would otherwise have been swallowed up by Whitehall.
“The WMCA has achieved a lot in a very short space of time. It requires funding to keep that work going and this figure represents superb value for money.”
Since the WMCA was established in 2016 it has invested nearly £100million in the Coventry City Centre South which will transform some of the most out-dated areas of the city.
It claims it has secured two devolution deals that will supposedly see the wider region get £1.4billion of government funding over the next 30 years.
The combined authority also plans to deliver a long term transport plan that will see £3.4billion of tram extensions, new suburban rail lines, cycle routes and motorway improvements built over the coming decade.
It launched a £200million brownfield remediation fund to clean up 1,600 hectares of contaminated industrial land and bring it back into use for new homes and commercial development.
Mr Street commented: “In the seven months the role of mayor has existed, the value of the office has already become quite clear, particularly in ensuring our region punches above its weight with government.
“The region is making exceptional progress and we must ensure this continues and help with our work to tackle homelessness and other important areas of work. The precept will be vital in ensuring we can continue our region’s economic recovery.
“But I am conscious also that we need quick action to tackle congestion and this is what the majority of the precept will be used for, particularly encouraging cycling and giving commuters a viable alternative to driving.”
After being discussed at next week’s meeting the proposed budget will then go before the WMCA budget scrutiny task group, which will report back to the board on February 9.
