Birmingham City Council in Serious Financial Mess

[deptfordmarmoset]

See also Tory Thurrock, Tory Northamptonshire, Labour Slough, Labour Croydon.

Hasn't Croydon declared bankruptcy under both Labour and Tory? If so, it would suggest that the problem lies with funding from central government rather than the elected councils' parties. The political colour of central government has been fixed for a good while, the troubled finances of local government can hit any colour.

 

[BoldonLad]

Hasn't Croydon declared bankruptcy under both Labour and Tory? If so, it would suggest that the problem lies with funding from central government rather than the elected councils' parties. The political colour of central government has been fixed for a good while, the troubled finances of local government can hit any colour.

Or, financial incompetence? Many of the "bankruptcies" (not just Croydon) have been preceded by failed business ventures, typically, property development and energy companies.

 

[Bromptonaut]

Or, financial incompetence? Many of the "bankruptcies" (not just Croydon) have been preceded by failed business ventures, typically, property development and energy companies.

What lead Councils to the position where investing in businesses or land speculation was legal never mind sensible?

 

[deptfordmarmoset]

Or, financial incompetence? Many of the "bankruptcies" (not just Croydon) have been preceded by failed business ventures, typically, property development and energy companies.

Calling it ''financial incompetence'' is rather like victim blaming if you accept that councils are underfunded. They are being forced to raise funds in ways for which they have only limited expertise.

 

[Pale Rider]

Calling it ''financial incompetence'' is rather like victim blaming if you accept that councils are underfunded. They are being forced to raise funds in ways for which they have only limited expertise.

Trying to blame the Conservative government for the incompetence of local authorities is a stretch, although I'm not surprised a few on here buy it.

 

[Deleted member 49]

Trying to blame the Conservative government for the incompetence of local authorities is a stretch, although I'm not surprised a few on here buy it.

The Tories have cut funding for Blackpool council by something like 1.2/1.4 billion since 2010....go figure.

 

[Unkraut]

Hasn't Croydon declared bankruptcy under both Labour and Tory? If so, it would suggest that the problem lies with funding from central government rather than the elected councils' parties.

I don't doubt the present govt has gone down a path of underfunding local govt. That said, it might also be the system that is at fault. Although those who run a local authority are professionals, the decision making is done by elected amateurs. This might be the price you have to pay for democratic oversight and policy making within local govt, but it is not necessarily conducive to their being run efficiently or competently. The fact that local councils of whatever political hue can end up bankrupt would indicate this is so.

 

[deptfordmarmoset]

Trying to blame the Conservative government for the incompetence of local authorities is a stretch, although I'm not surprised a few on here buy it.

If council bankruptcies multiplied during one party's rule over central government you would have the beginnings of an explanation.
2 decades waiting for the bankruptcy bus and then 6 come along.
https://news.sky.com/story/seven-ot...rupt-after-birmingham-city-went-bust-12954995

 

[the snail]

I don't doubt the present govt has gone down a path of underfunding local govt. That said, it might also be the system that is at fault. Although those who run a local authority are professionals, the decision making is done by elected amateurs. This might be the price you have to pay for democratic oversight and policy making within local govt, but it is not necessarily conducive to their being run efficiently or competently. The fact that local councils of whatever political hue can end up bankrupt would indicate this is so.

It's not just the present govt. The cuts from governments have been going on for decades. It's part of the tory strategy of cutting tax for the wealthy and transferring the burden to the poorest in tax rises and service cuts. It's not surprising that paley and co. fall for it though.

 

[Fab Foodie]

Oh dear oh dear....
https://www.theguardian.com/busines...-care-arts-sports-and-toilets-to-plug-deficit

 

[Pale Rider]

It's not just the present govt. The cuts from governments have been going on for decades. It's part of the tory strategy of cutting tax for the wealthy and transferring the burden to the poorest in tax rises and service cuts. It's not surprising that paley and co. fall for it though.

Witless time servers in town halls with responsibility of budgets of hundreds of millions are not a Tory conspiracy, much as some on here blame the Tories for everything from corked wine to crop failure.

Another problem is there aren't enough wealthy mates of the government to secure election wins.

Unless you are saying that all Conservative voting artisans are stupid.

 

[Unkraut]

Oh dear oh dear....
https://www.theguardian.com/busines...-care-arts-sports-and-toilets-to-plug-deficit

"Woking’s troubles stem from a programme of commercial investments and regeneration schemes involving hotels and skyscrapers overseen by its former Tory administration, ..."

Isn't this precisely what local authorities are not responsible for?
You almost get the feeling they were spending other people's money.

 

[deptfordmarmoset]

"Woking’s troubles stem from a programme of commercial investments and regeneration schemes involving hotels and skyscrapers overseen by its former Tory administration, ..."

Isn't this precisely what local authorities are not responsible for?
You almost get the feeling they were spending other people's money.

Or you get the feeling that they're desperate for ways of raising funds, much like a cash-strapped household might turn to loan sharks or even gambling. Desperate measures for desperate times.

There are now 26 councils at risk of effective bankruptcy.

• 5 councils are in the process of deciding if a section 114 notice should be issued (a warning sign of insolvency!)
• 9 councils said they may have to declare bankruptcy next year
• 12 councils considered declaring bankruptcy next year

Source: https://www.companyrescue.co.uk/gui...bankruptcy-according-to-recent-research-4947/

 

[BoldonLad]

What lead Councils to the position where investing in businesses or land speculation was legal never mind sensible?

Legal, and/or sensible aside, it was not compulsory. Councillors and Council Officials have proved themselves to be at best incompetent, in some cases large sums of public money have been squandered, some of it attaching itself to the participants. Political alliegnece does not appear to be a reliable indicator of success in this area, unless, that is, you count success as walking away with a big wedge of public money.

 

[BoldonLad]

Calling it ''financial incompetence'' is rather like victim blaming if you accept that councils are underfunded. They are being forced to raise funds in ways for which they have only limited expertise.

Forced? where any Councillors or Council Officials jailed, deselected, fired or otherwise penalised for not entering into these enterprises for which they were inadequately skilled, wouldn't that be a reason for caution?, which seems to have been remarkably absent.