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Thread: Birmingham Council declares bankruptcy

  1. #1

    Birmingham Council declares bankruptcy

    https://www.bbc.co.uk/news/uk-englan...ngham-66715441

    I know Birmingham has it's own unique issues but won't be long before we see others go the same way.

  2. #2

    Re: Birmingham Council declares bankruptcy

    15 point deduction for Brum I reckon.

  3. #3
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    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by WJ99mobile View Post
    https://www.bbc.co.uk/news/uk-englan...ngham-66715441

    I know Birmingham has it's own unique issues but won't be long before we see others go the same way.
    That's a terrible mismanagement of funds, how could that possibly happen, what party runs Birmingham?

  4. #4

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by North Cardiff Blue View Post
    That's a terrible mismanagement of funds, how could that possibly happen, what party runs Birmingham?
    Why do you think councils that have to spend huge amounts on social care , children's services and aging transport systems tend to struggle financially ?

    Why do you think councils in places like Surrey , Berkshire , Oxfordshire , Hertfordshire etc generally don't struggle ?

    You think it's because they are conservative led ?

    Don't insult your own intelligence

  5. #5

    Re: Birmingham Council declares bankruptcy

    "Local authority ‘spending power’ – the amount of money authorities have to spend from government grants, council tax and business rates – fell by 17.5% between 2009/10 and 2019/20, before partially recovering. However, in 2021/22 it was still 10.2% below 2009/10 levels.
    The fall in spending power is largely because of reductions in central government grants. These grants were cut 40% in real terms between 2009/10 and 2019/20, from £46.5bn to £28.0bn (2023/24 prices). This downward trend was reversed in 2020/21 and 2021/22 as central government made more grant funding available to local government in response to the pressures of the pandemic. Though even including Covid grants the fall in income from was 21% in real terms between 2009/10 and 2021/22; without, the fall was 31%."
    https://www.instituteforgovernment.o...unding-england

  6. #6

    Re: Birmingham Council declares bankruptcy

    Over the last year the extra pressures are pay rises, increased energy costs, increased supplier costs and pay equality settlements coupled with no new money provided by Central government to cover any of these increases.

    I suspect Birmingham will be the first of many to declare bankruptcy

  7. #7
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    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by SLUDGE FACTORY View Post
    Why do you think councils that have to spend huge amounts on social care , children's services and aging transport systems tend to struggle financially ?

    Why do you think councils in places like Surrey , Berkshire , Oxfordshire , Hertfordshire etc generally don't struggle ?

    You think it's because they are conservative led ?

    Don't insult your own intelligence
    Birmingham is Conservative-led?

    I didn't know that I live in Wales.

  8. #8

    Re: Birmingham Council declares bankruptcy

    The NHS would be bankrupt year after year if the government didn't bail it out but no such luxury afforded local councils

  9. #9

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by North Cardiff Blue View Post
    Birmingham is Conservative-led?

    I didn't know that I live in Wales.
    No Birmingham is labour led

    As are most councils that get into financial bother

    But it's got nothing to do with that which is the point you were trying to push

    But I am afraid you have fallen on your ass

  10. #10

    Re: Birmingham Council declares bankruptcy

    I recoin many of us could reduce expenditure by 40% just using common sense and not paying excessive executive salaries.....without affecting services.

  11. #11
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    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by SLUDGE FACTORY View Post
    No Birmingham is labour led

    As are most councils that get into financial bother

    But it's got nothing to do with that which is the point you were trying to push

    But I am afraid you have fallen on your ass

    OK fair enough why did you say it was Conservative?

  12. #12

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by Maurice Swan View Post
    I recoin many of us could reduce expenditure by 40% just using common sense and not paying excessive executive salaries.....without affecting services.
    The reason for such rampant financial problems since 2010 when your bloody tories came in is the huge reduction in block grant from the government

    It's all outlined above for you

    Less and less income , more and more demand for services

    Now we , ccfc can hopefully compete in the lower half of the championship but with the club not really spending any money we are unlikely to do well

    It's the same sort of thing

  13. #13

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by North Cardiff Blue View Post
    OK fair enough why did you say it was Conservative?
    I didnt

  14. #14

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by SLUDGE FACTORY View Post
    The reason for such rampant financial problems since 2010 when your bloody tories came in is the huge reduction in block grant from the government
    It's all outlined above for you
    Less and less income , more and more demand for services
    The old adage..."you cut your cloth......" when I lived in Aberdare, after looking at their accounts I volunteered to the council to undertake an audit (free) with a view to reducing costs and optimising services.....(after all I did used to run my own business unit and sat on a board of directors...).
    Unsurprisingly they declined. You must realise - even you - that there is so much wasted expenditure in local government.

  15. #15

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by Maurice Swan View Post
    I recoin many of us could reduce expenditure by 40% just using common sense and not paying excessive executive salaries.....without affecting services.
    Every year for 13 years?

  16. #16

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by Undercoverinwurzelland View Post
    Every year for 13 years?
    Not 40% each year obviously....but it's just like budgeting on home expenditure...just on a larger scale.

  17. #17

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by Maurice Swan View Post
    The old adage..."you cut your cloth......" when I lived in Aberdare, after looking at their accounts I volunteered to the council to undertake an audit (free) with a view to reducing costs and optimising services.....(after all I did used to run my own business unit and sat on a board of directors...).
    Unsurprisingly they declined. You must realise - even you - that there is so much wasted expenditure in local government.
    I work in local government Mo, and i'll tell you this, it's brutal. I work on Housing repairs and we're nailed down to doing the minimum required, even if it looks utter shit and by no fault of the trades person (in most cases) the quality and standard of work is greatly compromised. It's demoralising not just for the operative, but for the Tennant as well. I'm given 4 or 5 hours on a job that needs 2 days in order to do a good job that will last. It's cut to the bone.

  18. #18

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by Maurice Swan View Post
    Not 40% each year obviously....but it's just like budgeting on home expenditure...just on a larger scale.
    It isn't like budgeting on home expenditure, nothing like it.

  19. #19

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by Tuerto View Post
    It isn't like budgeting on home expenditure, nothing like it.
    Of course it is....the principle is the same...you estimate what you get in and then budget what goes out.
    When I ran a business unit....I balanced what revenue I could get with what staff/services I could provide.

  20. #20

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by Maurice Swan View Post
    Of course it is....the principle is the same...you estimate what you get in and then budget what goes out.
    When I ran a business unit....I balanced what revenue I could get with what staff/services I could provide.
    With respect though Mo, that's a bit simplistic. There are so many variables in running a local authority. And i'm not saying that money isn't wasted, because it is.

  21. #21

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by North Cardiff Blue View Post
    That's a terrible mismanagement of funds, how could that possibly happen, what party runs Birmingham?
    Apart from cuts in central funding, Birmingham Council were landed with a huge bill for equal pay claims. This has been an ongoing issue for years, pre Covid. That they have wasted so much money on IT is another issue. Their version of ULEZ hasn't helped either. I may be misquoting Jasper Carrot but, his comment about "if Britain was given an enema, Brum is where the tube would be inserted" holds true. It's turning into Detroit.

  22. #22
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    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by Tuerto View Post
    I work in local government Mo, and i'll tell you this, it's brutal. I work on Housing repairs and we're nailed down to doing the minimum required, even if it looks utter shit and by no fault of the trades person (in most cases) the quality and standard of work is greatly compromised. It's demoralising not just for the operative, but for the Tennant as well. I'm given 4 or 5 hours on a job that needs 2 days in order to do a good job that will last. It's cut to the bone.
    That can't be true, there is shed loads of money to change all the speed signs in Wales, and give millionaires free Viagra and cough medicine, how could they possibly do that if money is tight as those don't seem like the highest priority needs?

    Surely ministers wouldn't sanction fanciful ideas that the public doesn't even want when there are genuine needs?

  23. #23

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by IanD View Post
    Apart from cuts in central funding, Birmingham Council were landed with a huge bill for equal pay claims. This has been an ongoing issue for years, pre Covid. That they have wasted so much money on IT is another issue. Their version of ULEZ hasn't helped either. I may be misquoting Jasper Carrot but, his comment about "if Britain was given an enema, Brum is where the tube would be inserted" holds true. It's turning into Detroit.
    Yes I read the IT quotes to update their system.....Jeepers....I was a business director with a software company in London......dealing with Lloyds Bank/Prudential /Royal and Sun/Oracle/Tesco/Sainsbury/M&S etc......

    These sort of figures they are reputed to have paid are pure fantasy.....it;s the like of Capita et al in screwing people who have no knowledge...like MANY areas of government.

  24. #24

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by Maurice Swan View Post
    I recoin many of us could reduce expenditure by 40% just using common sense and not paying excessive executive salaries.....without affecting services.
    So how do you reduce looked after children costs by 40% or the rising costs of elderly care in the community by 40% - things that no high flying private executive can control ?

  25. #25

    Re: Birmingham Council declares bankruptcy

    Quote Originally Posted by North Cardiff Blue View Post
    OK fair enough why did you say it was Conservative?
    It was Tory run when the pay disputes occured but you knew that.

    And now comment on Northamptonshire and Thurrock..

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