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

Service Director - Finance

Isle of Wight Council
£95,212 to £102,389
We need a talented and experienced Service Director of Finance to join us and play a pivotal role Isle of Wight
Recuriter: Isle of Wight Council

Strategic Director of Finance and Deputy Chief Executive (Section 151)

Isle of Wight Council
£120,536 to £129,500
Strategic Director of Finance and Deputy Chief Executive (Section 151) Isle of Wight
Recuriter: Isle of Wight Council

Service Director - Education

Isle of Wight Council
£95,212 to £102,389
This is a great time to join our Children’s Services senior leadership team as a Service Director for Education where you’ll provide system leadership Isle of Wight
Recuriter: Isle of Wight Council

Class Teacher (Primary)

Durham County Council
£32,916- £51,048
Primary School Class Teacher M1-UPS3 (£32,916  - £52,149) Permanent, Full-time Contract to begin in September 2026.   The Governors of this happy and Durham
Recuriter: Durham County Council

SEND Inclusion Partner

Essex County Council
£44258.0000 - £52068.0000 per annum
SEND Inclusion PartnerPermanentPart Time, 22.2 hours per week£44,258 to £52,068 per annum FTE, £26,554.80 to £31,240.80 per annum (pro rata)Location
Recuriter: Essex County Council
Linkedin Banner