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Birmingham Council declares bankruptcy

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  • Birmingham Council declares bankruptcy

    John Cotton says "tough decisions" are needed as Birmingham City Council cannot balance its books.


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

  • #2
    Re: Birmingham Council declares bankruptcy

    15 point deduction for Brum I reckon.

    Comment


    • #3
      Re: Birmingham Council declares bankruptcy

      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?

      Comment


      • #4
        Re: Birmingham Council declares bankruptcy

        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

        Comment


        • #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%."

          Comment


          • #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

            Comment


            • #7
              Re: Birmingham Council declares bankruptcy

              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.

              Comment


              • #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

                Comment


                • #9
                  Re: Birmingham Council declares bankruptcy

                  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

                  Comment


                  • #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.

                    Comment


                    • #11
                      Re: Birmingham Council declares bankruptcy

                      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?

                      Comment


                      • #12
                        Re: Birmingham Council declares bankruptcy

                        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

                        Comment


                        • #13
                          Re: Birmingham Council declares bankruptcy

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

                          Comment


                          • #14
                            Re: Birmingham Council declares bankruptcy

                            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.

                            Comment


                            • #15
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