SMBC Veryfy - Council Tax Claims

SMBC Verify: Keeping Council Tax Low — At What Cost?

For many years, residents in Solihull have been told that the borough has one of the lowest council tax rates in the region — often presented as evidence of strong financial management.

But is that the full picture?

"Send me down there, I'll have a word"         

Recovery Grant - But Recovery from What?

What's claimed
​Recent campaign material states:
“Solihull has the second lowest Council Tax in the West Midlands.”
“This success is no accident; it is the result of careful financial management and responsible, long-term decision-making.”
There is truth in this. Solihull does have relatively low council tax compared to neighbouring authorities, and this has been a deliberate policy over a number of years.
Lower bills have clearly benefited residents in the short term.

​​What the data suggests
However, council tax is the council’s largest and most reliable source of income.
When tax levels are frozen or kept low for extended periods, income grows more slowly — even as costs continue to rise.
This effect is not always immediately visible. But over time, even small differences compound.
In simple terms:
If income stands still while demand increases, a gap begins to form.

---

​What independent auditors say
Recent audit findings raise questions about the longer-term financial position.
They highlight:

• Financial sustainability pressures
• A lack of a clear strategy to rebuild reserves
• Reliance on plans that do not yet have fully developed delivery detail

These are not short-term issues. They point to structural challenges that extend beyond a single year’s budget.

What do the Auditors Say?

---

The key question
​If maintaining low council tax was part of a long-term strategy, it is reasonable to ask:
Why are these financial risks now being identified?

---

What happens next
This article is part of SMBC Verify, a series reviewing public claims against financial data and independent audit findings.
In the next piece, we will examine:

• How council tax decisions affect long-term income
• What difference small annual increases can make over time
• Whether growth alone can bridge the gap

A simple takeaway
Keeping council tax low can reduce bills in the short term.
But over time, it may also limit how much income a council has available — especially when demand for services continues to grow.

Coming next:
​
How much income did Solihull forgo — and could different decisions have changed today’s position?