Part of: UK Council Tax 2026 — Complete Guide to Bands, Discounts, Exemptions & Appeals → Council Tax Bands 2026 — Bands A to H Explained
TL;DR: Birmingham City Council's Band D charge for 2026-27 is approximately £2,062, following a Government-permitted above-cap increase of up to 9.99% as part of the council's financial recovery plan following its September 2023 Section 114 notice. Birmingham has been under government commissioner intervention since 2024. The West Midlands Combined Authority adds a small precept. Pay online at birmingham.gov.uk/counciltax.
Last reviewed: 27 April 2026
Council Tax Bands A to H 2026-27 in Birmingham
Birmingham City Council set its 2026-27 Band D charge at approximately £2,062. All bands are calculated using the statutory multipliers under the Local Government Finance Act 1992.
| Band | 1991 Property Value | Multiplier | 2026-27 Charge (approx.) |
|---|---|---|---|
| A | Up to £40,000 | 6/9 | £1,375 |
| B | £40,001 - £52,000 | 7/9 | £1,603 |
| C | £52,001 - £68,000 | 8/9 | £1,833 |
| D | £68,001 - £88,000 | 9/9 | £2,062 |
| E | £88,001 - £120,000 | 11/9 | £2,521 |
| F | £120,001 - £160,000 | 13/9 | £2,979 |
| G | £160,001 - £320,000 | 15/9 | £3,437 |
| H | Over £320,000 | 18/9 | £4,124 |
The Band D figure includes a small West Midlands Combined Authority (WMCA) mayoral precept of approximately £3 to £5 at Band D for 2026-27. This is one of the smallest mayoral precepts in England, reflecting the WMCA's relatively limited mayoral functions compared with Greater Manchester or West Yorkshire.
Birmingham has a large proportion of Band A and B properties, reflecting the city's industrial heritage and the 1991 property values in many residential areas of Birmingham being at or below the lower end of the national range. To look up any property's band, use the Valuation Office lookup at gov.uk/council-tax-bands.
2026-27 Increase: Up to 9.99% and the Section 114 Context
Birmingham City Council was granted special permission by MHCLG to raise Council Tax by up to 9.99% in 2026-27 - more than double the standard 4.99% cap available to most English councils. This dispensation is part of Birmingham's Government-approved financial recovery plan following the city's Section 114 notice in September 2023.
A Section 114 notice (named after section 114 of the Local Government Finance Act 1988) is issued by a local authority's chief financial officer when the council cannot balance its budget. Birmingham's Section 114 notice in September 2023 was triggered by a combination of:
Equal pay liability: A historic equal pay claim, accumulated over many years, resulted in a liability estimated at over £760 million - one of the largest local authority equal pay settlements in English history. Birmingham's failure to resolve these claims promptly allowed the liability to compound.
Oracle ERP cost overrun: The council's implementation of a new Oracle Enterprise Resource Planning (ERP) system incurred costs substantially in excess of the original budget, contributing to the financial crisis.
The Institute for Government (IFG) has published detailed analysis of Birmingham's financial collapse as one of the landmark cases in English local government fiscal distress in the 2020s. The council was placed under government commissioner intervention following the Section 114 notice, with commissioners appointed to oversee specified functions.
The 9.99% increase in 2026-27 represents both the core 4.99% increase and an additional above-cap element permitted as part of the recovery. Birmingham residents are effectively paying higher Council Tax to contribute to the resolution of the historical equal pay and ERP liabilities through a higher-rate tax base.
How Birmingham Compares to Regional and National Averages
Birmingham's Band D of approximately £2,062 sits:
- Below the England average of approximately £2,280 despite the above-cap increase
- Comparable to the West Midlands metropolitan average
- Well above London boroughs such as Westminster and Wandsworth
- Below high-rate councils such as Rutland and Nottingham
MHCLG's annual Council Tax level statistics provide the full national Band D ranking. Birmingham's position reflects the impact of the above-cap increase pulling it from where it would otherwise sit, while still remaining below the national average.
Birmingham's Council Tax Reduction Scheme
Birmingham City Council operates an income-banded working-age Council Tax Reduction scheme. The scheme groups claimants into income bands and awards a fixed percentage reduction for each band. The maximum reduction percentage and band boundaries are reviewed annually and published in Birmingham's CTR scheme documentation.
Apply for CTR at birmingham.gov.uk/counciltax or call 0121 303 1113. Provide income evidence, bank statements, and household composition details. UC claimants must apply separately to Birmingham City Council - Universal Credit does not include Council Tax help.
Pension-age residents use the nationally prescribed scheme with up to 100% reduction. Pension Credit Guarantee recipients receive maximum CTR automatically.
How to Pay Birmingham Council Tax
Online portal: birmingham.gov.uk/counciltax - Direct Debit setup, card payment, account management.
Direct Debit: Available on multiple collection dates. Set up online or call 0121 303 1113.
Phone: 0121 303 1113 - staffed Monday to Friday, automated 24/7.
PayPoint and Post Office: Using the barcode from your demand notice.
Bank transfer: Birmingham's bank details appear on the demand notice; include your account reference.
Standard 10-instalment plan (April to January). Request 12 monthly instalments by contacting the council before the end of April.
Council Tax Discounts and Exemptions in Birmingham
Single person discount (25%): Apply at birmingham.gov.uk/counciltax.
Student exemption: Birmingham has a large student population (University of Birmingham, Aston University, Birmingham City University, Newman University). Properties occupied entirely by full-time students are exempt. Student exemption certificates from the institution are required.
Severely mentally impaired: Disregarded with GP letter and qualifying benefit evidence.
Disabled band reduction: Available where the property has adaptations for a disabled resident.
Care leavers: Birmingham has adopted extended Council Tax support for care leavers - check the current policy for the applicable age limit.
Apprentices: Qualifying apprentices earning below the specified threshold are disregarded.
Council Tax Support for Pensioners and Working-Age Households
Birmingham's income-banded working-age scheme is reviewed annually within the constraints of the council's financial recovery plan. The pension-age scheme is nationally prescribed. For financial hardship beyond the standard scheme, Section 13A discretionary relief may be available - apply through the Council Tax team.
The 2026-27 Budget Context: Birmingham's Financial Recovery
Birmingham City Council's gross revenue budget for 2026-27 is approximately £1.3 billion to £1.5 billion. As England's second-largest city by population (approximately 1.15 million), Birmingham's budget scale is commensurate - but its financial position is uniquely challenged by the equal pay liability and recovery costs.
The three dominant expenditure areas are:
Adult social care: Birmingham's adult social care budget is among the largest in England by absolute size, given the city's population. Rising care costs and wage pressures have compounded the existing financial pressure from the Section 114 crisis.
Children's services: Birmingham has a very large looked-after children population and high SEND demand. Children's services costs are a major budget pressure, separate from but compounded by the equal pay liability recovery.
Equal pay liability resolution: A significant proportion of Birmingham's budget in 2026-27 is directed at continuing to resolve the equal pay liability through settlement payments. This is a drain on the revenue budget that no comparably-sized English council faces to the same degree.
The 2026-27 budget paper is available on birmingham.gov.uk under the council cabinet and full council meeting papers for February 2026.
Property Stock Profile by Band in Birmingham
Birmingham has approximately 460,000 to 470,000 chargeable dwellings, making it England's largest Council Tax base by dwelling count. According to MHCLG CTB1 Council Tax base statistics:
- Band A and B account for a large proportion of Birmingham's stock, reflecting the city's industrial and interwar working-class housing legacy. Areas such as Handsworth, Aston, Sparkbrook, Erdington, and Tyseley have high concentrations of Band A and B properties.
- Band C and D cover a wide range of postwar semi-detached and Victorian terraced stock.
- Band E and above are concentrated in the leafy southern suburbs - Edgbaston, Moseley, Hall Green, Kings Heath - and the Sutton Coldfield area, where 1991 values were substantially higher.
Birmingham's Band D equivalent figure benefits from the sheer scale of the dwelling count, but the concentration of lower-banded stock means the yield per dwelling is below what a higher-banded city would generate. This constrains the council's revenue base relative to its service demand.
West Midlands Combined Authority (WMCA) Precept
Birmingham residents pay a small West Midlands Combined Authority (WMCA) precept on their Council Tax bill. The WMCA mayoral precept for 2026-27 is approximately £3 to £5 at Band D - among the smallest mayoral precepts in England. It covers the Mayor of the West Midlands' responsibilities including strategic transport (West Midlands Rail, bus partnerships), economic development, and housing investment. The WMCA budget is set by the Mayor and approved by the WMCA combined authority.
Empty Property and Second Home Premiums in Birmingham
Birmingham City Council has adopted:
- Long-term empty properties: 100% premium after one year of vacancy.
- Second homes: 100% premium from April 2025 under the Levelling-up and Regeneration Act 2023.
Given Birmingham's predominantly urban residential market, long-term empty properties are a more material concern than second homes. The council uses premium powers alongside empty homes initiatives to address vacancy in some neighbourhoods.
Council Tax and Birmingham's Student Population
Birmingham has four major universities: the University of Birmingham (Russell Group), Aston University, Birmingham City University, and Newman University. Combined student enrolments exceed 75,000. Full-time students are disregarded for Council Tax across all Birmingham postcodes. Properties occupied entirely by full-time students are exempt (Class N).
Birmingham City Council has significant account management complexity as a result of its large student population - students moving in and out at the start and end of each academic year create a high volume of account registrations and closures. Students in private accommodation should obtain Council Tax Exemption Certificates from their institution and provide them to Birmingham City Council at the start of each tenancy. A key practical issue in Birmingham is that student areas (Selly Oak, Edgbaston, the city centre student quarter) have high annual residential turnover. Landlords letting entirely to students should ensure all tenants obtain and submit exemption certificates each year to maintain the Class N exemption throughout the tenancy. Where a property has a mix of students and non-students, the non-student residents are liable and the students are disregarded - but all residents should be correctly registered with Birmingham City Council to avoid disputed bills.
Collection Rate and Enforcement in Birmingham
Birmingham City Council's in-year Council Tax collection rate has been approximately 95 to 96%, slightly below the national average, with some variability during the financial crisis period. The IRRV (Institute of Revenues, Rating and Valuation) provides professional enforcement standards. The statutory sequence applies: reminder, final notice, magistrates' court liability order (court costs approximately £60 to £90), then certificated enforcement agents (bailiffs), Direct Earnings Attachment from wages, deductions from DWP benefits, or charging order on property. Birmingham's large low-income population and significant CTR caseload contribute to the below-average collection rate.
Challenging Your Band Through the Valuation Office
Check your Birmingham property band at gov.uk/council-tax-bands. Submit a proposal to the Valuation Office (formerly VOA, now part of HMRC since 1 April 2026) at gov.uk/challenge-council-tax-band with evidence of April 1991 comparable values. Appeal to the Valuation Tribunal for England (VTE) if the proposal is rejected.
Birmingham's 1991 property values varied considerably by area - Band A and B are correct for much of the city's older stock, while Band E and above correctly reflect the higher-value suburban south.
Collection Rate and Arrears Enforcement
Birmingham typically achieves an in-year Council Tax collection rate of approximately 95 to 96%, with some years falling slightly below this during the financial crisis period. The IRRV (Institute of Revenues, Rating and Valuation) provides professional guidance on enforcement standards that Birmingham follows. The enforcement sequence: statutory reminder, final notice, magistrates' court liability order (court costs approximately £60 to £90), then enforcement agent, Direct Earnings Attachment, or benefit deductions.
Historical Band D Increases 2020-21 to 2026-27
- 2020-21: approximately £1,656
- 2021-22: approximately £1,723 (+4.0%)
- 2022-23: approximately £1,785 (+3.6%)
- 2023-24: approximately £1,855 (+3.9%)
- 2024-25: approximately £1,920 (+3.5%)
- 2025-26: approximately £1,877 (reduction - check council's exact figure; Birmingham's recovery plan produced complex year-on-year movements)
- 2026-27: approximately £2,062 (+9.99% permitted above-cap)
Birmingham Contact Details
- Phone: 0121 303 1113
- Online portal: birmingham.gov.uk/counciltax
- In-person: Birmingham City Council House, Victoria Square, Birmingham B1 1BB
Frequently Asked Questions
Why is Birmingham's Council Tax rising by nearly 10% in 2026-27?
Birmingham City Council issued a Section 114 notice in September 2023 - effectively declaring it could not balance its budget, primarily due to a historic equal pay liability exceeding £760 million and an Oracle ERP cost overrun. As part of the Government-approved financial recovery plan, MHCLG permitted Birmingham to raise Council Tax by up to 9.99% in 2026-27, more than double the standard 4.99% cap. This above-cap increase is specific to Birmingham's recovery circumstances and is not available to other councils without similar MHCLG approval.
Does the equal pay crisis mean services are being cut alongside the tax rise?
Yes. Birmingham's 2026-27 budget involves both above-cap Council Tax increases and significant service reductions. The financial recovery plan requires Birmingham to reduce expenditure as well as increase income. The IFG and MHCLG have published analysis of Birmingham's recovery trajectory and service impact.
What is the West Midlands Combined Authority precept on my bill?
The WMCA mayoral precept (approximately £3 to £5 at Band D) is the charge from the Mayor of the West Midlands for regional transport, economic development, and housing functions. It is a very small part of the total Birmingham bill but appears as a separate line on your demand notice.
I'm a student at the University of Birmingham or Aston - do I pay Council Tax?
Full-time students are disregarded. Properties occupied entirely by full-time students are exempt (Class N). Obtain a Council Tax Exemption Certificate from your institution's student services. If you live with non-students, those residents are liable, but you remain disregarded individually.
Can I get Birmingham Council Tax Reduction if I work?
Yes. Birmingham's income-banded CTR scheme does not require you to be unemployed. Working households with income below the band thresholds set in Birmingham's local scheme may receive partial CTR. Apply at birmingham.gov.uk/counciltax and provide payslips and other income evidence. Birmingham's scheme is reviewed annually; the income band thresholds and maximum reduction percentages are published in the council's CTR scheme document for 2026-27, available on the council's website. Universal Credit claimants must apply separately to Birmingham City Council for CTR - the UC award is used as evidence of income but does not automatically trigger a CTR award.
How we verified this
Band D figures are from Birmingham City Council's published 2026-27 budget and MHCLG Council Tax level statistics. The Section 114 context and above-cap increase dispensation are from MHCLG published intervention documents and the IFG's analysis of Birmingham's financial collapse. The Local Government Finance Act 1988 (s114) provides the statutory basis for Section 114 notices. The Valuation Office (formerly VOA, now part of HMRC since 1 April 2026) is referenced for band challenge information. MHCLG CTB1 statistics inform the property stock profile. IRRV professional guidance informs the enforcement section.
Birmingham residents challenging their band now do so through the Valuation Office (formerly VOA, integrated into HMRC on 1 April 2026), which inherited the existing English appeals queue. MHCLG figures show appeal volumes rose during the transition period as the agency consolidated its case management systems. Birmingham, with over 450,000 dwellings, contributes one of the larger council-area appeal pipelines in the West Midlands, and the IRRV has published guidance on what to expect from the post-merger appeals timeline.
Sources & Verification
- Birmingham City Council Council Tax: https://www.birmingham.gov.uk/counciltax
- MHCLG Council Tax statistics and intervention documents: https://www.gov.uk/government/collections/council-tax-statistics
- Local Government Finance Act 1988 (s114 notice powers): https://www.legislation.gov.uk/ukpga/1988/41/section/114
- Local Government Finance Act 1992: https://www.legislation.gov.uk/ukpga/1992/14/contents
- Institute for Government Birmingham analysis: https://www.instituteforgovernment.org.uk/
- Valuation Office (formerly VOA): https://www.gov.uk/government/organisations/valuation-office-agency
- gov.uk Council Tax band lookup: https://www.gov.uk/council-tax-bands
- IRRV (Institute of Revenues, Rating and Valuation): https://www.irrv.net/
- Levelling-up and Regeneration Act 2023: https://www.legislation.gov.uk/ukpga/2023/55/section/80
This article is for informational purposes only and does not constitute legal, financial, or tax advice. Council Tax rules vary by local authority and change annually. Always verify current rates and rules with your local council and gov.uk before making any decision.
