Article: published on 19 January 2024

Sir Keir Starmer and Richard Parker at the University of WarwickImage source, Labour Party
Image caption,

The Labour leader visited the University of Warwick on Friday

Councils 'not to blame' for financial woes

  • Published

Labour’s candidate for West Midlands mayor, Richard Parker has refused to blame councils in the region for the financial difficulties they are facing.

Mr Parker said government cuts were the main reason some councils were in financial trouble.

The government says it is making billions more available to councils, who are ultimately responsible for their own finances.

Mr Parker spoke to BBC CWR at a summit of Labour mayors at the University of Warwick earlier today.

Image source, University of Warwick
Image caption,

Labour mayors met with researchers, technicians, and students

The event was attended by Labour leader Sir Keir Starmer, who chaired a meeting to discuss the party’s manifesto plans ahead of the next general election.

Mr Parker said the summit was focused on “how best to align campaign strategy” and “build on policy development”.

He was asked whether councils in Coventry and Dudley, as well as Birmingham - which has declared itself effectively bankrupt - should accept any responsibility for the state of their finances.

Mr Parker said: “I’m not going to blame local authorities irrespective of their political colour for the problems they’re in."

A number of councils in England have warned they are at risk of going bust after the government set out its tax and spending plans last year

Birmingham City Council effectively declared itself bankrupt last year as it faced the dual challenge of an equal pay liability of £760m and an £80m overspend on an IT project.

Coventry City Council is facing similar challenges and spending cuts, after forecasting a £30m budget shortfall for the next financial year.

Image source, University of Warwick
Image caption,

Labour mayors and mayoral candidates visited the University of Warwick on Friday

Last month, the government said councils would have £64bn to spend next year, assuming they all raise council tax by the maximum amount.

Ministers argue this represents a 6.5% increase on this year and will account for inflation.

But Mr Parker said the “issues affecting local government are deep and profound”.

Mr Parker said he did not wish to comment yet on the proposal to hand the powers of the West Midlands Police and Crime Commissioner to the West Midlands mayor.

He said he would take a position after the government had completed its consultation on the proposal and made a decision.

West Midlands mayor Andy Street has accused Mr Parker of “refusing to come clean on his views on the future of policing and crime”.

But Mr Parker said it was “inappropriate” for him to debate Mr Street on policing powers and would only do so “if the roles are merged”.

When asked if he was afraid to debate Mr Street in public, he said: “Absolutely not.”

“I will be making very clear to people the difference Labour would make in this region.”

Andy Street said it was "surprising" the candidate did not appear to have a view on the future of policing governance in the region.

"This is a time for leadership - not sitting on the fence," he added.

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