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

Senior Highways Inspection Officer

The Royal Borough of Windsor & Maidenhead
£39,526 - £43,613 per annum.
We have an exciting opportunity for a Senior Highways Inspection Officer to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Co-ordination Support Officer

Wakefield Council
Grade 5 SCP 8 £26,824 - SCP 11 £28,142
Do you have excellent business administration skills with an interest in working in Adults Social Care? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Engineering Team Manager (Transportation)

Calderdale Metropolitan Borough Council
Special A Grade, SCP 42-45, £53,460 - £56,732 per annum
Lead the way. Shape Calderdale’s transport future. Calderdale, West Yorkshire
Recuriter: Calderdale Metropolitan Borough Council

Social Worker Care Co-ordinator

Durham County Council
£35,412 - £39,152 (pre-progression) / £40,777 - £45,091 (post-progression) pro rata pa
We are seeking a dynamic and motivated Social Worker who places young people at the centre of their practice. This is an exciting opportunity to make Spennymoor
Recuriter: Durham County Council

Accommodation Officer

Durham County Council
Grade 7 £30,024 - £33,699
Are you passionate about preventing homelessness and making a real difference in people’s lives? As an Accommodation Officer in our Independent Livin Seaham
Recuriter: Durham County Council
Linkedin Banner