‘Bankrupt’ Birmingham council plans up to 600 job cuts

Chief executive Deborah Cadman said they were entering into consultation with unions about the redundancies

Birmingham City Council said up to 600 jobs could be made redundant as it struggles with its huge debt.

The authority added it would start conversations with unions and staff immediately.

The council declared itself effectively bankrupt last year amid equal pay claims of up to £760m and an £80m overspend on an IT system.

Chief executive Deborah Cadman said no decisions would be made until the end of a period of consultation.

"The council faces exceptional financial, cultural and governance challenges," she added in a letter to staff on Tuesday,

Independent commissioners were brought in to help the authority plug a £300m gap over the next two years.

Stuart Richards, senior organiser at the GMB, said he was "disappointed" the news was made public before talks were held with the union.

"We've not yet received the full information of what those proposals are or what the total number of redundancies are," he said.

"Again, seeing this in the public domain before they start talking to the trade unions is incredibly disappointing."

The council said it would start talks with unions immediately

Ms Cadman said the 600 jobs did not include posts deleted through a revamp of the organisation that were already vacant or vacancies.

"I understand that this news will be unsettling, and I want to reassure you that we are here to support you through this process," she said.

Staff will be invited this week to attend a briefing to hear how the consultation period would work, the council said.

The briefings were planned to be held either later this week or next and staff were urged to attend them and ask questions.

On 22 January, Ms Cadman will host an online meeting alongside the authority's director of people services Katy Fox.

Ms Cadman told staff that she recognised that this news might have felt like a "long time coming".

"But, it was important for us to consider all options, prepare properly for this change, talk to our trade unions partners, and ensure that the proposals we make are the right ones for the council, our city, and our residents," she added.

"We have had to make, and will continue to make, tough decisions to ensure the future of the council and how we deliver services to residents."

Birmingham City Council has already asked the government for permission to raise council tax by up to 10% each year for the next two years

The authority has the most debt of any council in the country, according to BBC analysis.

The council owes more than £2.9bn to lenders, placing it ahead of Leeds on £2.2bn and Woking on £1.9bn.

However, council bosses said it is no surprise it was top of the list as it was the largest local authority in the country.

A spokesperson for the council said: "We understand that this news will be unsettling, and I want to reassure you that we are here to support you through this process."

The BBC recently revealed the council had asked the government for permission to raise council tax by up to 10% each year for the next two years.

The council is due to set its budget next month.