West Midlands Mayor Andy Street hits out at Birmingham City Council leadership

West Midlands Mayor Andy Street has hit out at Birmingham City Council’s leadership in a statement after the local authority admitted it is effectively bankrupt.

The city council announced this morning it could no longer balance its books and issued a Section 114 notice.

Deputy leader Sharon Thompson described the decision as a “necessary step to get us back on strong financial ground” and pointed to the unprecedented number of councils across the country facing financial issues.

However, the leadership has faced criticism from opposition parties with Tory leader Robert Alden claiming the cabinet was living in “cloud cuckoo land” to suggest the issues were not the result of its own failings.

Andy Street, the Mayor of the West Midlands has now added his voice to the throng.

He said: “Today’s news from Birmingham City Council is deeply disturbing, and raises serious questions about the council’s leadership and the decisions they have taken over the past decade.

“When the news of the equal pay bill – which according to reports has now spiralled to more than £1.1 billion – first broke, we were all assured by the council that despite the seriousness of the situation they would produce a plan as to how they could settle the bill. I stood ready to support and help once that plan had been produced, irrespective of political colours.

“However, more than two months on, no plan has emerged. Instead, we are simply presented this morning with what is effectively a bankruptcy notice and an admission of defeat. The city of Birmingham deserves so much better, and truthfully I am incredibly concerned that citizens – and the services they rely on – have been let down in this way.

“It is no secret that local authorities up and down the country have faced significant cuts over the past decade (even if the funding from Government has been improving in recent years), and it has been a real challenge to keep services running to the standard that people expect.

“However the huge majority of councils of all political colours are managing to achieve this, with bankruptcy extremely rare.

“But it is not for me to conduct the inquisition – however severely there needs to be one. My job is to continue to put this city’s residents first, irrespective of politics.

“I am no clearer than any of you about what this will mean for council tax bills or key services – but I can make a promise.

“That promise is that I will leave no stone unturned in ensuring citizens are protected as best as humanly possible from the fallout.

“I will work tirelessly with Ministers, Government officials, and of course the City Council themselves to try and resolve this situation in a way that shields residents, their pockets, their services, and their futures.

“Finally, just because the city council is in this position does not suddenly mean that Birmingham is failing – indeed far from it.

“We have made huge strides as a city and region in recent years, encapsulated by the Commonwealth Games last year.

“I would urge anyone looking to back Birmingham to reflect on our progress, and consider our world-class institutions, our innovative businesses, and the record amounts of investment being made. Birmingham remains firmly open for business. However bad today’s announcement, I will play my part to ensure the city gets through this.”