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Birmingham City Council announces £600m of cuts Birmingham City Council announces cuts and job losses
(about 1 hour later)
Bosses at Birmingham City Council say £600m of savings must be made by 2017, with £120m in the next financial year.Bosses at Birmingham City Council say £600m of savings must be made by 2017, with £120m in the next financial year.
Cuts of £62m to the Labour-run authority's 2012-13 budget were voted for in February with warnings that 1,100 jobs could go.Cuts of £62m to the Labour-run authority's 2012-13 budget were voted for in February with warnings that 1,100 jobs could go.
Council leader Sir Albert Bore said the authority was still looking at those job losses and said some services would have to be "decommissioned" completely. Council leader Sir Albert Bore said some services would have to be "decommissioned" completely.
It still has more than the national average to spend on every household. The government said the council still got more than the English average to spend on each of its households.
Sir Albert warned the authority could face an additional £60m to £70m of cuts on top of the £120m for 2013-14, depending on reductions in direct government grants.Sir Albert warned the authority could face an additional £60m to £70m of cuts on top of the £120m for 2013-14, depending on reductions in direct government grants.
'Horrendous' situation'Horrendous' situation
He said he had written to Eric Pickles, the minister in charge of local government, for clarification.He said he had written to Eric Pickles, the minister in charge of local government, for clarification.
The council leader said the authority was now looking at cutting £600m in total over the six years running up to March 2017 - £200m more than initially thought.The council leader said the authority was now looking at cutting £600m in total over the six years running up to March 2017 - £200m more than initially thought.
He blamed successive cuts in government grants for the council's "horrendous" financial situation, which he said had not taken into account population changes, inflation and other costs.He blamed successive cuts in government grants for the council's "horrendous" financial situation, which he said had not taken into account population changes, inflation and other costs.
The leader said the government had banned authorities from raising council tax by more than 1.6% without holding a referendum among voters about whether they would be prepared to pay more. He refused to rule that out as a possibility.The leader said the government had banned authorities from raising council tax by more than 1.6% without holding a referendum among voters about whether they would be prepared to pay more. He refused to rule that out as a possibility.
Sir Albert said: "This is the end of local government as we have known it.Sir Albert said: "This is the end of local government as we have known it.
"But this is not the end of local government completely."But this is not the end of local government completely.
"It needs to be inventive, it needs to find new ways to work with partners like public agencies, schools and the business community to find different ways to do this.""It needs to be inventive, it needs to find new ways to work with partners like public agencies, schools and the business community to find different ways to do this."
Labour took over the running of the council, the UK's largest local authority, in May from a Conservative/Liberal Democrat coalition.Labour took over the running of the council, the UK's largest local authority, in May from a Conservative/Liberal Democrat coalition.
The council said it would be holding several public meetings from next month over which services should go.The council said it would be holding several public meetings from next month over which services should go.
There's a good deal of politics in this.
As Labour council Leader, Sir Albert is firing the first salvo in this year's round of claim and counter-claim between local authority leaders and ministers leading up to the government's announcement before the end of December of next year's funding settlement for councils.
His negotiating position is not only about decommissioning services.
He also believes big cities like his get a raw deal compared with southern, Conservative, councils where there is less need for local services and a greater ability to pay for them.
The Communities and Local Government Department says Birmingham still has £2,576 to spend on every household against the England average of £2,186.
It adds that Birmingham benefits from government help including a City Deal worth £1.5bn, the New Homes Bonus, a city centre Enterprise Zone and £22m in Growing Places funding.
Sir Albert said that at its height, the council employed 19,000 full-time members of staff but that figure would fall to less than 15,000 over the "next few years".Sir Albert said that at its height, the council employed 19,000 full-time members of staff but that figure would fall to less than 15,000 over the "next few years".
He said it would be mid to late-November before the authority would have more details on how many and what sort of jobs would be affected, although he said some senior posts could be axed.He said it would be mid to late-November before the authority would have more details on how many and what sort of jobs would be affected, although he said some senior posts could be axed.
Sir Albert said there could be "no more 'salami-slicing' of services".Sir Albert said there could be "no more 'salami-slicing' of services".
"With the extent of the cuts over the past few years and with more to come, we have to start decomissioning services," he said. "With the extent of the cuts over the past few years and with more to come, we have to start decommissioning services," he said.
"I am not looking forward to this but it has to be done.""I am not looking forward to this but it has to be done."
'Growth incentives'
A spokesman for the Department for Communities and Local Government said the council "still has £2,576 to spend on every household - more than the average in England of £2,186" and said the government would be introducing new incentives for all local authorities.A spokesman for the Department for Communities and Local Government said the council "still has £2,576 to spend on every household - more than the average in England of £2,186" and said the government would be introducing new incentives for all local authorities.
In a statement they said: "The funding settlement for councils will be announced later this year.In a statement they said: "The funding settlement for councils will be announced later this year.
"New growth incentives will give successful councils a direct boost to their coffers, which could add £10 billion to the wider economy. "New growth incentives will give successful councils a direct boost to their coffers, which could add £10bn to the wider economy.
"Birmingham is already getting government help to grow its local economy, through a city deal worth £1.5bn, the New Homes Bonus, an Enterprise Zone and £22m in Growing Places Funding."Birmingham is already getting government help to grow its local economy, through a city deal worth £1.5bn, the New Homes Bonus, an Enterprise Zone and £22m in Growing Places Funding.
"In addition, the government will support a third year's council tax freeze - potentially worth over £200 to Band D residents."In addition, the government will support a third year's council tax freeze - potentially worth over £200 to Band D residents.
"Given councils account for a quarter of all public spending, it is vital they continue to play their part in tackling the inherited budget deficit by making sensible savings through better procurement, greater transparency and sharing back offices."Given councils account for a quarter of all public spending, it is vital they continue to play their part in tackling the inherited budget deficit by making sensible savings through better procurement, greater transparency and sharing back offices.
"This year, Birmingham had £2,576 to spend on each household to protect the front-line services people rely on, more than the English average of £2,186.""This year, Birmingham had £2,576 to spend on each household to protect the front-line services people rely on, more than the English average of £2,186."
Ravi Subramanian, Unison's regional secretary for the West Midlands, said: "We want the council to stand up for Birmingham and take a strong message to Eric Pickles to say we need more money to keep our city services running."