Labour leaders warn of ‘social collapse’ in letter to PM

LABOUR leaders in the West Midlands have written to the Prime Minister warning that the region is on the brink of ‘social collapse’.

The open letter calls on the government for a ‘complete reform’ of funding for local councils, arguing that austerity cuts since 2010 have had a ‘disastrous’ impact on services.

The government, however, has hit back stating the region will have more ‘power’ to capitalise on growth from business rates.

It comes as Theresa May told the Conservative Party Conference in Birmingham last week that the end to austerity is ‘in sight’ and spending on local services will increase after Brexit.

Prior to the event a Labour letter, endorsed by party leader Jeremy Corbyn, had been publicised declaring that the West Midlands has ‘had enough’ of government cuts.

It was signed by Councillor Ian Ward, the leader of Birmingham City Council, along with the leaders of Labour administrations in Dudley, Sandwell, Wolverhampton, Coventry, Cannock Chase, Telford and Wrekin, Nuneaton and Bedworth.

A host of MPs, Police and Crime Commissioner David Jamieson and various union representatives also backed it.

The letter said: “We believe government’s current path of austerity leads to infrastructural and social collapse.

“We therefore call on government to reverse the disastrous policy of austerity that has dominated thinking in the Treasury since 2010 and has been disproportionately weighted against local authorities.

“We also demand complete reform of Local Government funding to make councils more sustainable and more accountable to the local electorate. Local authorities should be given the power to set local taxes and retain local revenue, allowing the proceeds locally.”

In response a spokesman from the Ministry of Housing, Communities and Local Government said: “Councils across the West Midlands will receive over £9.1 billion over the next two years to meet the needs of their residents. Authorities in the region have also been given the power to retain the growth in business rates income, and this is expected to raise an extra £52m.” of growth to be kept