The rising cost of living will be felt across Sandwell in 2025 with a host of bills, fees and charges all set to rise. The ever-increasing cost of living will be set to rise further with Sandwell Council revealing a host of cost-saving and money-making measures which it hopes will balance its books.
Here are five things that will definitely affect residents in Sandwell next year.
Council tax rise
As it has done in many years previously, and is allowed to do by law, Sandwell Council plans to raise council tax by at least an extra two per cent as part of ring-fenced contributions to the rising cost of adult social care.
The increase, which can only be used to pay for Sandwell’s adult social care, is usually accompanied by a further increase in general council tax – which can go up to a combined 4.99 per cent without a referendum having to be called.
The region’s police and fire services also set their own precepts which will be added to council tax bills. Sandwell’s precept increased by nearly five per cent last year which resulted in average household bills increasing between £65 and £80 a year and similar rises will be expected in 2025/6.
Bin collection changes
Labour-run Sandwell Council plans to cut bin collections to every two weeks under cost-cutting plans.
The changes would see household waste collected every two weeks instead of one with recycling waste then collected in the intervening weeks. Sandwell Council said the “vast majority” of waste goes into the borough’s black bins and is not recycled. The local authority said the changes would also save money as it looks to address a £20m gap to be able to balance its books next year.
New laws mean the council has to address its poor recycling performance or could face “significant costs and penalties in the future.”
Sandwell Council’s 25-year contract with waste firm Serco is worth around £650m.
Rent rise
Sandwell Council has revealed it plans to increase social housing rent by 2.7 per cent from April – meaning households will pay between nearly £120 and £150 more next year.
Next year’s increase follows a five per cent rise in rent last year.
The proposed hikes would see the average rent rise by an extra £133 next year. The rent for a council flat would increase by £127, high-rise and low-rise flats by £113 and £119 respectively and the average rent for a council house would rise by £146.
Fees and charges hike
The cost of weddings and funerals in Sandwell are set to rise next year after a council’s predicted income fell short by £1.3million. Sandwell Council has revealed it plans to hike a host of its fees and charges from January 1 including burials and cremations, weddings as well as increase the price of collecting garden waste.
The majority of fees and charges for weddings and funerals in Sandwell would rise between seven and 10 per cent. The cost of a burial would rise by 10 per cent from £1,281 to £1,409 and the price for a grave in Sandwell would also increase by 10 per cent from £2,389 to £2,628. A plot for cremated remains will also cost 10 per cent more increasing to £1,762. The cost of burying a pet would also rise by the same percentage.
£20m gap in finances and planned cuts
Sandwell Council revealed a host of cost-saving measures in October which it hopes will cover a £20m shortfall in its budget for next year.
The list of cost-cutting and saving proposals include the aforementioned controversial switch to fortnightly bin collections and council tax rise but also several money-saving ‘reviews’ of services hopeful of saving millions.
The council’s medium-term five-year financial plan makes for bleak reading with ever-increasing yearly deficits expected to total £162m by 2030.
The worrying set of figures shows that while £20m needs to be found by the time the budget is expected to be set in February next year – it pales in comparison to the shortfalls of £25m, £33m, £40m and £44m that will also have to be found to balance the council’s next five budgets.
Other proposals include reducing ‘high-cost’ services in adult social care, changing funding for free nursing care placements, and reviewing charges for day services and transport. Children’s services would face “targeted price reductions” in services as part of a host of measures to cut nearly £3m.