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

Strategic Risk Manager

Wakefield Council
£59,962.00, Grade 14, 37 hours, Permanent
Are you ready to lead the strategic risk and insurance agenda for a forward-thinking local authority? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Principal Management Accountant

Wakefield Council
Grade 11 - Grade 12
Are you passionate about making a difference to our citizens and the district that they reside in? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Principal Engineer Section 38/278

Wakefield Council
£47,181.00 - £50,269.00, Grade 11, 37 hours, Permanent
Are you an experienced engineer with a strong background in Section 38 and Section 278 agreements? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Administration Support Apprentice

Wakefield Council
National Minimum Wage - Apprentice
Wakefield Council is a former winner of the prestigious national award of Large Employer of the Year for Apprenticeships Wakefield, West Yorkshire
Recuriter: Wakefield Council

Deputy Manager

Durham County Council
Grade 11 £40,777 - £45,091
The Role  We are seeking a Deputy Manager who will support the Registered Manager to ensure the deliveery of high-quality care. You will  work directl Durham
Recuriter: Durham County Council
Linkedin Banner