Birmingham slashes services as taxes soar
‘Bankrupt’ Labour council starts £300million of cuts, dimming street lights and reducing bin collections
STREET lighting is to be dimmed and bin collections will be made fortnightly at England’s largest local authority, as council tax soars by 21 per cent.
Labour-run Birmingham City Council, which declared itself effectively bankrupt last year, has launched £300 million of cuts over the next two years. At the same time, council tax will rise by 10 per cent in April and 10 per cent the year after. Residents will have to endure reduced services despite the extra tax, along with increased charges for burials being introduced. Up to 600 council staff could lose their jobs.
John Cotton, the Labour council leader, said he was “really sorry that we find ourselves in this position”, and that they were “really difficult decisions to take”. He added: “There are issues in this council that need to be fixed and I am focused laser-like on fixing those but we’re also seeing a crisis raging right across local government as well.”
The council issued a section 114 notice in September, meaning it could not balance its books, after facing equal pay claims of up to £760million and an £80million overspend on an IT system.
Independent commissioners were brought in by Michael Gove to help run the council, which owes almost £3billion to lenders. The two 10 per cent council tax increases, which add up to 21 per cent over two years, will add around £350 to a typical Band D home and £700 on the most expensive Band H homes.
On Monday night, Birmingham said it intended to cut £150million from its budget in 2024/25 and the same amount in 2025/26. Fortnightly waste collections are set to be introduced in 2025/26, with other savings expected to come in almost immediately.
Dimming street lights is expected to save almost £1 million a year, while cutting spending on highways maintenance could save up to £12million, depending on the outcome of discussions over a Private Finance Initiative.
Adult social care will be cut by £23.7million in the next financial year. Crisis payments for food and gas bills will cease. The bulky waste charge will increase from £35 to £45, while garden waste subscription charges will rise from £50 to £60 a year.
Deborah Cadman, the council’s chief executive, said no decisions on the number of job losses would be made until the end of a period of consultation.
Robert Alden, leader of the Conservatives on the council, said: “The Labour group has been discussing their plan to gut the city’s services for a year and yet have left it until the last two weeks to tell Brummies of their plan.”