Council leader urges "Birmingham is still open for business" despite financial troubles
Councillor John Cotton is back from a holiday in New York and has been facing a grilling from fellow councillors.
Birmingham City Council Leader, Councillor John Cotton, has been facing fellow councillors and cabinet members a week on from submitting a Section 114 notice.
Exactly one week ago today, the council effectively filed for bankruptcy and announced they would be sticking to essential spending only.
It means cuts for some services are expected but after today's meeting that hasn't gotten any clearer on what will be affected.
This all began over an unpaid equal pay claim worth 760 million pounds, and a catastrophic IT system set to put the council back by 100 million pounds.
Councillor John Cotton admitted that the "equal pay was an issue for some time."
During the meeting today he said: " Under my leadership, we will not hide from the challenges we face.
"We will welcome scrutiny and we will be accountable.
"That despite the challenges we face, Birmingham is still open for business. There is a way forward."
He then turned onto the budget cuts for local councils and placed the blame for some of the issues at the Conservative's doorstep.
He continued: "I do understand that this is a worrying time for people across a city that has been short-changed by Tory austerity since 2010.
"As many local government experts have noted over the last week, there is a growing financial crisis across a sector that has been hollowed out by over a decade of vicious and short-sighted cuts.
"Here in Birmingham that has meant cuts to our budget of around £1 billion since 2010, and like councils across the country, we now face unprecedented financial challenges, from huge increases in adult social care demand and dramatic reductions in business rates income, to the impact of rampant inflation.
"Some 26 local authorities could issue a section 114 notice in the next two years according to Sigoma. Just one council issued a Section 114 notice before 2010 and eight have issued one since.
"Well, we all know what changed in 2010."
Opposition leader for the Conservatives, Councillor Robert Alden said: "He was astonished by the speech and that the Labour elected council have had six years to fix this issue."
Currently, Birmingham City Council are in talks to the Local Government Association about creating an improvement board with specialist experts in finance, HR and industrial relations, service improvement, IT, and governance.
There will also be a meeting with Secretary of State, Michael Gove, to discuss the way forward, including what support the government can give Birmingham.
There will also be a submitted plan, which has been informed to expect "tough decisions" to restore financial stability.
On September 25, the council will meet again to discuss the council's budget recovery plan.