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UK’s Second Greatest Metropolis Declares Monetary Misery

Birmingham is dwelling to some 1.1 million folks.


The UK’s second greatest metropolis on Tuesday admitted that it can not steadiness its books, blaming Conservative governments for years of under-funding.

Birmingham Metropolis Council in central England mentioned it had issued a Part 114 Discover beneath the Native Authorities Finance Act 1988, which blocks spending on all however important providers.

Leaders of the Labour-controlled council referred to as the transfer “a needed step” to get spending again on a stronger footing.

They mentioned “long-standing points”, together with the roll-out of a brand new pc system, had been compounded by cuts of £1 billion ($1.25 billion) by successive Conservative governments since they got here to energy in 2010.

“Rampant inflation”, alongside will increase in the price of grownup social care and reductions in enterprise charges earnings had created “an ideal storm”, they added.

However Tory councillors on the council blamed Labour mismanagement of public funds.

In June, the council revealed that it has to pay as much as £760 million to settle historic equal pay claims.

Birmingham is dwelling to some 1.1 million folks.

Croydon Council in south London issued a Part 114 discover in November final yr due to a £130 million black gap in its price range.

Thurrock Council in Essex, east of London, additionally declared itself in monetary misery in December final yr.

SIGOMA, a grouping of 47 city councils throughout the LGA, final week warned that one in 10 of its members have been thought-about making the statutory admission that they don’t have any prospect of balancing their books.

Practically 20 % mentioned they might do the identical within the subsequent yr.

Excessive inflation, rising power prices and wage calls for have exacerbated authorities funding cuts to important providers, it mentioned.

Councillors have to satisfy inside 21 days of a Part 114 discover being issued and produce a price range that makes needed cuts to cut back spending.

SIGOMA chairman Stephen Houghton mentioned: “The federal government must recognise the numerous inflationary pressures that native authorities have needed to take care of within the final 12 months.”

He added: “The funding system is totally damaged. Councils have labored miracles for the previous 13 years, however there may be nothing left.”

(Apart from the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)

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