Labour-run Birmingham City Council today issued a Section 114 Notice, admitting they cannot meet their equal pay liabilities and cannot fix the £760 million equal pay black hole on their own meaning they are effectively bankrupt.
Responding to the effective bankruptcy of Labour-run Birmingham City Council, Green Party co-leader Carla Denyer said:
“This is just the tip of the iceberg. Over the next two years at least 26 councils in some of Britain’s most deprived areas are at risk of going the same way and the Local Government Association has warned councils in England face a funding gap of almost £3 billion just to keep services standing still.
“Thirteen years of Tory austerity has left day-to-day local services delivered by councils crumbling. This cannot be fixed without extra revenue.
“This should serve as a wakeup call to Labour. It’s time to tax the super rich who have seen their wealth mushroom in recent years, so as to provide extra money to maintain vital public services.
“Even millionaires themselves have joined economists and politicians from around the world in calling for extra taxes on the richest. Labour needs to play catch-up and pledge to tax the super-rich, or a future Labour government will drag the country into bankruptcy.”
The Green Party Group Leader on Birmingham City Council, Cllr Julien Pritchard, also blamed mismanagement from the local Labour Administration for the crisis.
He said:
“Our Labour-run Council has been dealt an awful hand by Tory cuts but they have also played it terribly. They have utterly mismanaged an equal pay crisis with dreadful consequences. Ordinary Brummies shouldn’t have to pay for Labour’s mess.
“The government will need to step in to ensure Birmingham residents don’t suffer – it’s vital this isn’t solved with a fire sale of the city’s assets at knock down prices.
“We need to see solutions that ensure the most in need in our city are protected. This includes tackling the Council’s appalling housing conditions, supporting residents through the cost-of-living crisis, and protecting the vital services our residents rely on. Parks, libraries, community spaces and buildings are all essential to achieving a better quality of life for Brummies.
“While Labour fail citizens locally, the Conservative government do the same nationally. Birmingham’s Green Party councillors continue to be strong advocates for the people of Birmingham.”