The Government will not oppose Birmingham City Council's request to increase council tax by 10 per cent from April 2024.
Michael Gove, Secretary of State for Levelling Up, Housing and Communities, said the blame for such a hike lay with those responsible for the council's "failures and mismanagement".
The council could raise council tax by 10 per cent for this coming financial year, although Birmingham City Council told GB News budget proposals have not yet been published so no decision has been made.
The rate hike comes as authorities try to save £300million over two years.
Levelling Up Minister Michael Gove blamed the council's "failures" and "mismanagement"
PA
Local authorities with social care responsibilities (county and unitary authorities) cannot increase council tax by more than five per cent each year unless a local referendum approves a higher amount.
However, Birmingham City Council has requested flexibility to increase council tax bills by an extra five per cent.
Addressing the request, Mr Gove said: "The Government has expressed ongoing concern about the significant financial mismanagement at the Council and has launched a five-year intervention to tackle its serious financial and governance problems.
"It is disappointing that Birmingham City taxpayers are having to foot the bill for the Council’s poor governance and decision-making.
"Whilst the Government will not oppose this request given the seriousness of the circumstances, any decision to increase council tax is solely one for Birmingham City Council, who should have taken into account the pressures that people in Birmingham are currently facing on living costs.
"The Government is of course conscious of the effect on local taxpayers, particularly those on low incomes, of having to foot part of the bill for these Councils’ very significant failings.
"We have been clear to each of the Councils that in implementing any additional increases, they should take steps to mitigate the impact on those least able to pay."
Mr Gove said for the upcoming financial year, a bespoke council tax referendum principle of 10 per cent will apply to Thurrock Council, Slough Borough Council and Woking Borough Council.
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Mr Gove said: "When taking decisions on council tax levels, I expect all Councillors, Mayors, Police and Crime Commissioners and local councils to take into consideration the pressures many households are facing and the need to control unnecessary and wasteful expenditure."
He added: "The Government’s view continues to be that councils that have taken decisions to get themselves in the most severe financial failure should continue to take all reasonable local steps to support recovery including additional council tax increases."
GB News has contacted the Department for Levelling Up, Housing and Communities (DLUHC) asking for comment.