Thomas Bridge 13 June 2014

Birmingham Council could go bankrupt in 18 months, MP warns

A MP has warned Birmingham City Council could go bankrupt in just over a year, as calls mount for a local leadership rethink.

Speaking to the House of Commons, Gisela Stuart MP for Edgbaston warned of a bleak financial future for the region’s city council and piled further pressure on local leaders to put in place a directly elected mayor.

‘In 18 months' time, on the current trajectory, the city could go bankrupt,’ Stuart said in a debate attended by communities secretary Eric Pickles.

Leader of Birmingham City Council Sir Albert Bore recently warned the town hall would ‘need to completely rethink’ its role and structure due to the scale of required budget cuts.

Birmingham needs to save more than £285m over the next two years, despite having already reduced its workforce by a third since 2010.

Bore said the financial future of 2015 onwards would be ‘the end of local government as we know it’.

Stuart also told MPs Birmingham’s move to put the adoption of a directly elected mayor out to a local vote remained ‘a big mistake’.

‘If we want to devolve power in England outside London,’ she added, ‘we need strategic directly elected mayors.’

The council was unable to respond to Stuart’s claims at this time.

SIGN UP
For your free daily news bulletin
Highways jobs

Technical Officer

Sheffield City Council
Grade 9 £47,181 to £51,356
Are you an experienced highways professional with a passion for highway asset management, maintenance delivery, and technical leadership? Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Team Leader (Section 278 / 38 Road Safety)

Cardiff Council
Grade 10 - £48,226 - £51,356
Cardiff is one of the UK’s fastest‑growing and most vibrant cities. Cardiff (Caerdydd)
Recuriter: Cardiff Council

Licensing Compliance Coordinator (Temp)

City Of Doncaster Council
£28,598 to £31,537
Do you want to work in job which makes a difference to the local community and the people who live there? Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

External Funding Development Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£46,206 - £62,451
External Funding Development Manager
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Casual Customer Operations Assistant

Wyre Borough Council
£12.85 per hour
Marine Hall is a vibrant and dynamic venue dedicated to delivering exceptional experiences for our audiences and customers. Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council
Linkedin Banner