The way local government is funded is too short-term and has resulted in local authorities such as Birmingham City Council being forced to declare bankruptcy, Sir Keir Starmer has told the BBC.
Speaking to BBC Radio WM, the Labour leader said his party would fix how councils are funded were they to be elected in the next general election.
‘It's almost impossible to plan properly, we've got to fix that,’ he said.
The finances of local authorities across the country ‘have been very tight for years and that has contributed to the problem in Birmingham,’ he continued.
‘What we would do in Government is change the funding settlement for councils like Birmingham. At the moment, it is very short-term.’
A spokesperson for the Department for Levelling Up Housing and Communities told the BBC decisions on council funding levels would be taken after the Spending Review next year.
If this article was of interest, then check out our feature, ‘How to fix local government finance’.
