- Council tax rises 21%
- £300m cuts approved
- Services, refuge funding threatened
The action was deemed “devastating for council employees and the entire city” by Unite. It follows last year’s effective declaration of bankruptcy by the authority.
The Birmingham City Council has approved a 21 percent increase in council tax over the next two years.
Additionally, over fifty councillors supported £300 million in cuts during the same period.
The Unite union described the action as “devastating for the employees of Birmingham Council and the city as a whole.”
It follows the local government’s near-bankruptcy declaration last year, precipitated by an estimated £760 million bill to settle equal pay claims.
Town hall officials issued a section 114 notice in September, confirming that all new spending must cease immediately, except for protecting vulnerable people and statutory services.
Residents were issued an apology by council leader John Cotton for the “unprecedented” budget cuts during a debate on the proposals.
Mr. Cotton stated, “I never envisioned this budget for our city.” However, it is this budget that, regrettably, reflects the formidable challenges this council is currently faced with.
“Because the harsh reality is that we must reduce spending by more than £300 million over the next two fiscal years to meet the challenge posed by commissioners and to receive exceptional financial support from the government.”
As stated in the report before us, this is an event of unprecedented magnitude; therefore, I apologise unequivocally to the residents and communities of our city.
During the five-hour council meeting, it was explained that the reductions were necessary to obtain £1.3 billion in government-backed exceptional financial support (EFS) loans.
Clare Keogh, the national officer for local authorities at Unite, stated after Tuesday night’s vote, “Vast public services are virtually on the verge of extinction.”
“This marks the end of years and years of severe budget cuts implemented by the central government.”
The workforce of Birmingham Council, which has endured wages that have decreased for more than ten years and whose contributions have ensured the continued operation of progressively diminished services, should not be held responsible for a crisis that was not their fault.
The county council, which is administered by the Labour Party, is the largest local authority in Europe.
Concerns regarding the effects of cutting
The Birmingham Gilgal Women and Children’s Refuge is one of the establishments threatened by the reductions.
80% of the funding for the institute, which assists victims of domestic violence, is provided by the council.
Concerns have been raised that the organisation may lose its funding as its contract with the authority is up for renewal this year, according to chief executive Sanja Kalik.
One day at a mental health institution costs between £1,000 and £2,000, and we do not want them [the women] there,” she explained. “Our services are not cheap.” They have endured years of torture and rape. They deserve better.”
A resident of Gilgal named “Sarah” and her young child sought refuge at the facility following their separation from an abusive partner.
When asked what would have happened in its absence, she responded, “In all honesty, I believe I would have died.”
“My journey here has helped me face the truth and taught me more about myself and my capabilities; previously, I was in denial.
“The assistance is precisely what was needed. “It is a safe space where I am able to confront the trauma I have experienced and be myself.”
