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

Trainee Pensions Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£30,225 - £34,389
Trainee Pensions Officer
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Street Lighting Project Engineer

North Yorkshire Council
£38,220 - £42,839 per annum
Are you looking for an electrical street lighting role within an innovative and exciting Electrical Engineering team? Leeming Bar, Northallerton
Recuriter: North Yorkshire Council

Team Leader - Electrical Engineering/Street Lighting

North Yorkshire Council
£51,356 - £55,539 per annum
Are you an experienced Street Lighting Engineer who would be interested in joining an award-winning team Leeming Bar, Northallerton
Recuriter: North Yorkshire Council

Roaming Ranger

Essex County Council
£25959.0000 - £29820.0000 per annum
Roaming RangerPermanent, Full Time£25,959 to £29,820 per annumLocation
Recuriter: Essex County Council

Partnership Director - Central Pool

West Midlands Pension Fund
£83,576 - £95,386
Shape the future of one of the UK's largest public sector investment partnerships Wolverhampton, West Midlands
Recuriter: West Midlands Pension Fund
Linkedin Banner