Birmingham given go-ahead to raise council tax by up to 10%

Birmingham councillors will confirm the rate of the council tax rise in a meeting on 5 March. Photograph: Neil Hall/EPA

Council tax in Birmingham is likely to increase by up to 10% after the government allowed the local authority to bypass the national cap without the need for a local referendum.

The increase will affect more than 1 million people in the UK’s largest local authority, which declared itself effectively bankrupt last year due to a £300m budget gap.