Displaying items by tag: birmingham city council

Birmingham City Council, Europe's largest local authority, has approved significant service cuts to address a financial crisis, including a 21% increase in council tax over two years. The council, facing bankruptcy, must save £300m, resulting in "devastating" measures. Council Leader John Cotton expressed deep regret for the impact on city residents. Last September, the council announced its inability to meet financial obligations, leading to a section 114 notice declaration, signifying bankruptcy. This was prompted by equal pay claims amounting to £760m and a £80m overspend on a problematic IT system. These austerity measures, labelled unprecedented by Cotton, have prompted widespread criticism from local Conservatives and protests from residents. Up to 600 council jobs are at risk, and public services like libraries, parks, and cultural projects face reductions. Other measures include reviewing school transport, eliminating arts funding, selling off community centres, reducing fly-tipping enforcement, and introducing parking charges in country parks. The financial outlook remains challenging for Birmingham, with looming equal pay liabilities and IT system overspends. Despite a £1.25bn government bailout loan, the city faces the daunting task of repaying this through asset sales. See also