How awkward: Birmingham has declared itself ‘bankrupt’. More on that below – first, a look at the front pages: “Newspaper headlines: ‘Birmingham bankrupt’ and ‘benefits revamp’.“ (link). The interesting point here is that only one paper has Birmingham’s bankruptcy on their front pages: the FT. What is going on?

Inside the online editions we do find reports on this bankruptcy which mean in effect that Birmingham Council cannot engage in any new spending, with the prospect of local council tax bills rising by 10%. The Times writes:

“Birmingham city council has been accused of “lying to the public” after effectively declaring itself bankrupt amid concerns about how its previous accounts were approved. The Labour-controlled local authority, the largest in Europe, said that it no longer had enough money to fund an £87 million gap in its budget while facing up to £760 million in equal pay legal claims. The decision to issue a Section 114 notice, an acknowledgement that those in charge of Britain’s second largest city can no longer balance the books, makes it the latest in a series of local authorities to financially collapse.” (link, paywalled)

How on earth could this have happened? The ‘blame’ is put on the ‘Equal Pay Act’ which led to a law suit by Birmingham”s low-pay female council workers – in 2012: 

“The council has attempted to justify the move as the inevitable consequence of a massive bill to meet an equal pay claim, after a court found that women working in roles such cleaning missed out on bonuses awarded to men in traditionally male jobs that were judged to be similar.” (paywalled link)

Oh dear. Elsewhere we’re told that:

“The crisis has now seen a blame game break out within the local authority as the council’s Labour leaders said ‘huge increases in adult social care demand… dramatic reductions in business rates incomes [and] rampant inflation’ were to blame.” (link) 

Note that the cost of illegal immigrants isn’t mentioned. It beggars belief however that the claim of 174 female employees such as cooks and cleaners, brought in 2012, to receive equal pay with men, should lead to this unbelievable hole in the Birmingham budget. Oh wait – there’s also this:

“Other financial pressures faced by the council include its flagship IT system – known as Oracle – which has been plagued by repeated delays. In May, it emerged that Oracle could now cost up to £100 million – five times its original budget.“ (paywalled link)

It comes as no surprise that not just Birmingham but other local councils are trotting out the usual excuse, so beloved by Labour:

“Birmingham’s financial collapse has also been partly attributed to years of Conservative government funding cuts to councils that have led other local authorities to plead for government bailouts in the past two years. Many others are on the brink.” (link, paywalled)

Ah yes: “Torrreee Cuts!”:  how convenient. Correct me if I’m wrong but I seem to recall that local councils, mostly Labour, splurged out on insane Net Zero projects such as installing ‘cycle paths’, especially during the covid years.

Never mind that income from business rates was bound to fall given that fewer and fewer people were visiting towns thanks to the ‘no car’ inconveniences, and thanks to more and more shops going out of business not just ‘because: covid!’ but because of the ever more extortionate business rates.

Never mind that for years councils spent more money on looking after illegal guests while cutting services, e.g. for the elderly, to the bone. And then there’s this:

“Birmingham has 21 officials on more than £100,000, and the latest accounts show that Deborah Cadman, the chief executive, took home £184,374 plus more than £30,000 in employer pension contributions.” (paywalled link). 

These breathtaking stipends for local councils’ “CEO’s”, up and down the country, somehow is never being questioned. The Taxpayers’ Alliance has been reporting on local council excesses for years. 

Over those same  years council services have deteriorated to a shameful extent. Cardiff cannot be the only city where money is there for ‘events’ while even road cleaning services have been cut back so much that the whole city is dirty, unkempt and uncared for. I close with this paragraph from the DT’s editorial:

“A succession of Labour-run councils, meanwhile, has ended up in a similar situation to Birmingham. Labour leaders in local government rarely own up to their mistakes, however, preferring instead to blame “austerity” or other actions taken by the Conservative administration in Westminster.  They have been allowed to get away with it for far too long. Birmingham is not a poor city and there is no reason why it should not thrive under the right leadership. Sadly, however, it has become another case study in what can happen when the Left is entrusted with power. How does Sir Keir plan to reassure the public now that voting for his party does not mean voting for bankruptcy?” (paywalled link)

Good question! He cannot – but frankly, given the ongoing ‘news’ about the country’s institutions, from schools to the NHS to the Armed Forces, crumbling and being in disarray: what choice is there when the current government looks as if ministers are now in ‘aprés nous, le deluge‘ mode?

That’s all I have for today. I think we can all rest assured that the top civils serpents, from Whitehall down to Local Councils, won’t have to fear for their income. After all, we stupid peasants are paying without complaining. Have a good day.



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