Big service cuts, a large council tax increase, and asset sales mark Birmingham’s recovery plan after bankruptcy.
This is all part of a “recovery plan” that started when the council declared bankruptcy last fall. Opposition members will question the Labour leaders, and a full council meeting will vote on the plan later this month.
The strapped council needs to save cash, so they must make £148 million in new cuts. They plan to raise council tax by 7.5%, aiming to balance the budget for year two. This will not be easy for Birmingham residents.
The council released a list of cuts and rises last week, and the cuts show a bleak picture in print. Adult and children’s services face the worst cuts, and bin collections will switch to every two weeks, saving £4.5 million.
Some areas will start the new bin schedule in April. The council plans to cut all arts and culture grants, which saves nearly £1 million. Libraries’ future is also under discussion today, with plans to reduce library hours and possibly close seven libraries entirely.
There may be tension between councils, as Birmingham and Sutton Coldfield Town Councils may fight. They disagree about a rescue plan that involves three local libraries.