Council Tax rise warning on cost of new Birmingham library

Mar 28 2008 By Neil Elkes

BUILDING a £193 million landmark Library of Birmingham could put another £17.50 on the average family's council tax bill.

That was the stark warning from a former city library chief as it emerged that £39 million of the budget has yet to be secured or accounted for.

The cost of a world class library could also rise further if property values plummet and the sale of city centre land such as Paradise Forum and the Wholesale Markets fails to raise the current value.

Coun John Alden (Con, Harborne), the former cabinet member for leisure, sport and culture, said: "The city council is underwriting the cost of the library and if we fail to raise the money, or make the efficiency savings to pay for it we could have a serious problem."

The breakdown of costs for the world class library, set to be completed in 2012, is £99 million from council borrowing, £55 million from land sales and £39 million from other sources such as grants and sponsorship.

The council watchdog committee investigating the proposal was told that the £99 million was already accounted for in budget planning.

Coun Alden added: "This council has kept council tax at 1.9 per cent for three years and is aiming to keep future rises low.

"There is £39 million unaccounted for. We are told there are contingency plans, but I would say this is more substantial than a simple contingency.

"If we fail to raise the sponsorship and borrow that money that puts one-and-a-half per cent on council tax."