The Government has said local taxpayers in Birmingham are now paying an “eye-watering” price for Labour’s economic mismanagement, as councillors signed off a wave of devastating cutbacks this afternoon.
Birmingham City councillors agreed a wave of swinging cuts and a 21 percent hike in council tax amid a rush to make £300 million in savings.
The council, Europe’s largest local authority, declared itself effectively bankrupt in September after being sued by female employees alleging they had been refused the same level of bonuses as their male counterparts. This afternoon, Labour council leader John Cotton apologised “unreservedly” to locals for the pain now set to come.
The tightening of its purse-strings, passed today, will impact all aspects of council services, from reduced bin collections, to street lighting and cuts to arts funding.
A total of 53 councillors backed the new spending plans, with just three opposing.
A Government source has this evening torn into Labour, and said Birmingham is a “flashing red warning sign” for what Labour will do should they win the General Election.
The source close to Michael Gove said: “The Labour Party’s severe mismanagement of Birmingham City Council – the largest local authority in Europe – has bankrupted the council”.
“There are eye-watering levels of debt and wasteful spending. Sadly local residents are being made to pay for Labour’s failure through higher taxes. This is a flashing red warning sign for what a Labour government would do to the UK.
“More spending, more borrowing, more debt and higher taxes. Taking us back to square one.”
Today’s approval of the devastating plans will also mean a loss of 600 council jobs. Other local services set to be hit include libraries, adult social care, children’s services, flood defences and highway maintenance.
The council also approved a 10 percent council tax increase for the current year, after having to beg the government to grant it special permission to increase the rate beyond the legal limit.
Addressing the chamber, leader John Cotton said he “unreservedly apologised to the people of the city” for the “unprecedented scale of cuts”.
“I am under no illusion what this budget will mean for our communities. The decisions we must make here today will have a lasting impact on every single neighbourhood in Birmingham and that weighs heavily on me.”
Despite Labour facing humiliation over the financial mismanagement, Mr Cotton tried pointing the finger of blame at the Government, decrying the “forest fire raging through local government”.
He asked: “Who is going to apologise for the prolonged Conservative-led neglect that has brought so many councils to the brink?”
Local Conservative leader Robert Alden said Labour is hoping that residents “will believe them when they claim it wasn’t their fault”.
The council meeting saw widespread protests outside the chamber, with furious residents demanding “No to cuts”.
