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Birmingham bankrupt
- Thread starter splinter
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The opposite of " Robbed the rich to feed the poor"Apparently Nottingham has now declared itself bankrupt today.
BeerIsTheBest
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I posted a short while back on the cuts my council has to make to plug a c£18m deficit in its next short term budget. And this deficit hole is ‘only‘ £18m if the council quickly delivers a dreamt- up menu of unpalatable cuts / closures / service reductions, sells assets, imposes extra charges and burns through its remaining cash reserves.
Nottingham/ Birmingham is the iceberg tip. Some councils seem to have been careless with their money but many have been buggered up the arse by Tory funding reductions and policy decisions to load costs onto councils without providing adequate cash to help.
Not sure folk appreciate just how bad things are going to get - particularly in the North.
Nottingham/ Birmingham is the iceberg tip. Some councils seem to have been careless with their money but many have been buggered up the arse by Tory funding reductions and policy decisions to load costs onto councils without providing adequate cash to help.
Not sure folk appreciate just how bad things are going to get - particularly in the North.
TinFoilHat
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- Manchester City
My council is officially skint. A Tory free council which had its central funding dramatically cut out of spite for voters who wanted rid of the bastards.Apparently Nottingham has now declared itself bankrupt today.
Depends which Council you are on about. £18m isn't that bad for a medium sized MBC, or fairly typical. All have lost 50% of funding or so since 2010, so more like hundreds of millions.I posted a short while back on the cuts my council has to make to plug a c£18m deficit in its next short term budget. And this deficit hole is ‘only‘ £18m if the council quickly delivers a dreamt- up menu of unpalatable cuts / closures / service reductions, sells assets, imposes extra charges and burns through its remaining cash reserves.
Nottingham/ Birmingham is the iceberg tip. Some councils seem to have been careless with their money but many have been buggered up the arse by Tory funding reductions and policy decisions to load costs onto councils without providing adequate cash to help.
Not sure folk appreciate just how bad things are going to get - particularly in the North.
Birmingham was about £30m PA short in its Medium Term Financial Strategy, which was nothing compared to its budget as the biggest Council, just the job evaluation case went badly. Every Council did their own job evaluation, and it seemed made up as it went along. However if you have 100s doing certain jobs rather than one person, the prospect of a challenge is far greater, so Birmingham's size helped lead to its downfall.
Some Councils have used the General Power of Competence (from the Localism Act 2011) to earn extra money and mitigate the cuts, but then you see a few bad examples like Thurrock which were ridiculous in the extreme. There are massive skills shortages now in technical areas.
The more or less final cuts were known since 2016 in the main with the shift away from the Revenue Support Grant to Business Rates retention, the real problem is demand increasing due to the ageing population, and that will go on for generations.
I'm With Stupid
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Just out of interest, how do they decide how much to give each council from central government? Surely it's not possible for them to decide based on who makes up the council? Or do they simply cut them all, and make councils raise their own money meaning that poorer areas will naturally have less money?My council is officially skint. A Tory free council which had its central funding dramatically cut out of spite for voters who wanted rid of the bastards.
gordondaviesmoustache
Well-Known Member
It’s ridiculous and counterproductive for the city that Nottingham has four different councils. It skews the statistics which frequently makes ‘Nottingham’ (city council) the worst place to live nationally statistically in terms of certain key indicators - and means there’s a lack of joined up thinking and policy across the conurbation.My council is officially skint. A Tory free council which had its central funding dramatically cut out of spite for voters who wanted rid of the bastards.
Taking London and its various boroughs out of the equation, the only comparable situation I can think of where a city is divided municipally is Stoke which also has Newcastle council, but Stoke’s six towns have always had more of a distinct identity from each other, and two is much easier to manage than four. Plus Stoke is a wholly different proposition to Nottingham.
Merging those four councils would make the subsequent political mix much more balanced too. I don’t think it’s healthy democratically that any local authority is effectively a one party council.
It simply doesn’t make sense and not sure what the logic was.
Wonder who's next
Trafford; the money has all been spent on the swamps leaking roof.