Birmingham City Council is facing a vote on a series of cutbacks to local services, as well as a 21% increase in council tax rates. The council had been allowed by ministers to raise council tax by 10% a year over the next two years, which is usually only permitted following a local referendum. This comes after the largest local authority in Europe declared itself essentially bankrupt in 2020, and is attempting to save approximately £300m.
These cutbacks will impact libraries, parks, and cultural projects, among other areas. Members of the council have described the situation as “devastating”. This news follows concern over the finances of councils across the UK, which are expected to be collectively in debt to £5.2bn by 2026.
Nottingham City Council has also approved substantial job losses and reductions of social and youth services as part of attempts to balance its books. Council leader David Mellen claimed that councillors only voted “with great reluctance”. He continued to say, “It wasn’t a freedom of expression. It was a need to do the responsible thing for the sake of the services run by Nottingham City Council.”
Councils’ spending power for local services will have fallen by 27% since 2010 by the 2024-25 financial year, according to the Local Government Association. This decline has been attributed to a drop in grants from central government, combined with rising inflation, energy costs, and the National Living Wage. Birmingham City Council’s difficulties are partially due to more than £1 billion in payouts made to settle equal pay claims from underpaid workers
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