Further delay to crisis-hit council's budget

Birmingham City Council has all but declared bankruptcy

An announcement about which services will be cut as a crisis-hit local authority tries to balance its budget has been delayed.

Earlier this month, Birmingham City Council asked ministers for permission to raise council tax by as much as 21% over the next 2 years.

But it says it is not expecting a response till the end of February and, without this, remains unable to set a budget.

In September, the council effectively declared itself bankrupt, as it grapples with a £760m equal pay claim liability and a huge overspend on an IT system.

Shortly afterwards the government announced the appointment of commissioners to help run the authority.

In a statement, the council said the Department for Levelling Up, Housing and Communities (DLUHC) had confirmed a decision would come during the week commencing 26 February.

"We have been advised by the government that, until we get this response, we cannot set our budget," it said.

A cabinet meeting to consider budget proposals is now due to take place on 27 February, two weeks later than planned.

A DLUHC spokesperson said: "Residents have been let down by Birmingham City Council’s failure to get a grip of the significant issues it faces.

"The timing of meetings is a matter for individual councils. We have been clear with the council on the expected timeframes for their exceptional financial support request, and we are working closely with them on the request."