Residents fear a rise in crime and taxes as Birmingham declares 'bankruptcy'

Nathan Dennis fears a return to the austerity of a decade ago

Crime could rise if youth services are cut, the founder of a charity which supports young people has warned.

His warning came after Birmingham City Council declared itself essentially bankrupt, ceasing non-essential spending.

Residents and traders are waiting to hear what the impact might be.

Nathan Dennis, of the First Class Foundation, a charity providing mentoring to young adults, feared a return to the austerity cuts of 2010.

He said he was shocked when he heard about the council's £760m equal pay liability, which it is being blamed for some of its financial strife.

In 2010 to 2011, when the Conservative and Liberal Democrat coalition government embarked on a programme of deep spending cuts and tax increases, about 18 youth clubs in the city shut, he said.

By issuing the section 114 order, Birmingham City Council declared itself essentially bankrupt.

"There is a correlation between when we had all those 18 youth clubs close - crime, violence, anti-social behaviour increased," he said.

"We need to create as much safe spaces for our young people to go to so they can get that kind of extra-curricular activity time, to have that time to engage with mentor, youth workers, to engage them positively."

While the council does have to maintain its statutory services, like education and social care, it has already halted non-essential spending, and will not commit to funding new projects.

"The unfortunate thing is it is probably those on the fringes, on the sidelines, that are going to be impacted the most," Mr Dennis added.

Cafe owner Andy Davies is worried about a potential rise in business rates

Across the city, residents wait to see what the impact will be for them.

Andy Davies, owner of Spitfire Cafe at the Castle Vale Enterprise Park, said if rates were to rise it would be another burden on him.

"The worry is that council tax will also rise," he said.

John Kirby said Birmingham City Council's financial situation was "ridiculous"

Retired HGV driver John Kirby said: "It is just ridiculous really because they just waste money all the times on things that there is no need to be done.

"Like all the money they spent on those games in Perry Barr and knocking flyovers down and things like that that they could have done without just for a few months."