John, councils across the country have warned that they face a massive financial black hole and possible bankruptcy after the government provided English councils with only a third of what they need to get their communities through this coronavirus crisis. Birmingham City Council alone faces a £212 million shortfall and is in the process of drawing up an emergency budget to deal with the growing pressure on the essential services it runs.
The lack of support from central government has meant that councils are being forced to draw up plans that could see essential services cut. At the beginning of this crisis, the Prime Minister gave his word that he would give councils whatever funding they needed to keep our communities safe. Despite this assurance, councils have only been given a fraction of what's needed. Local authorities face a £10 billion coronavirus funding shortfall, an issue raised by Keir Starmer at PMQs earlier this month. In a letter last month, I joined Birmingham colleagues in urging the Prime Minister not to break his word to give councils the funding they need to keep communities safe during this crisis. If he breaks his promise, it will be the most vulnerable in our communities, and the workers who are giving so much to support them, who will suffer most. Without urgent support, local councils will be forced to introduce a new wave of cuts and be unable to reopen key services. This must not happen. |
