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tv   World Business Report  BBC News  March 5, 2024 2:30pm-2:46pm GMT

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press the button? no? i call please press the button? no? i call for the reply. please press the button? no? i call for the reply-— for the reply. that is councillors in birmingham. _ for the reply. that is councillors in birmingham. they _ for the reply. that is councillors in birmingham. they are - for the reply. that is councillors i in birmingham. they are expected shortly to approve swingeing cuts to their local services as they look to save, as we've been discussing, £300 million. europe's largest local authority declared itself effectively bankrupt and is trying to make those cuts. up to 600 counciljobs could go, and as we heard earlier in the programme, the likes of libraries, parks and cultural projects are all due to be affected. the council tax will rise by 21% over two years, so it is a big amount of money we are talking about, £300 million in cuts. the counsellors there are expected to
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approve that because they are in such a dire financial situation, and we will go back when that vote comes in birmingham. as we've been discussing, it isn'tjust birmingham facing these financial issues. let's remind ourselves of why we are seeing these cuts happening across the country. tony travers is professor of public policy at the london school of economics. it is london school of economics. it is now 14 london school of economics. it is new 14 years _ london school of economics. it is now 14 years since _ london school of economics. it is now 14 years since an _ london school of economics. it 3 now 14 years since an attempt was made by national government to bring down its deficit, and that involved piling cuts more on local government, and the home office and justice departments, than other parts of public spending, such as the national health service and the state pension, which have been protected. local government took deeper cuts than other parts of the public sector. although in the last two or three years, the government has found slightly extra money for local government, it is still spending perhaps ten or 20% less in real terms today than it was back in
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2010. other parts of the public sector are spending more. we need to note that demand for services is giving up. the population is getting older, it is growing, and many people have needs that they have to have where councils have to provide services. in a sense, it is reduced resources in greater demand. in the end, some way will have to be found in national politics to change the local government funding model, or get local government to do less. aha, get local government to do less. a listener from nottingham called into listenerfrom nottingham called into the nicky campbell programme earlier today. we the nicky campbell programme earlier toda . ~ ' , ., today. we need different parts of the community. _ today. we need different parts of the community, groups - today. we need different parts of the community, groups and - today. we need different parts of. the community, groups and leaders, we made _ the community, groups and leaders, we made up — the community, groups and leaders, we made up a group called resolve, which _ we made up a group called resolve, which was _ we made up a group called resolve, which was to stand up to the cuts and get _ which was to stand up to the cuts and get as— which was to stand up to the cuts and get as many people from nottingham to sign a petition which
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we managed to get over 11,000 signatures to take to downing street and hand _ signatures to take to downing street and hand to michael gove, because we caniust _ and hand to michael gove, because we caniust see _ and hand to michael gove, because we canjust see that and hand to michael gove, because we can just see that these cuts are going _ can just see that these cuts are going to — can just see that these cuts are going to be absolutely devastating. they have been proposed to predominantly impact front line services — predominantly impact front line services that are already exhausted, already— services that are already exhausted, already depleted. with the pandemic, we have _ already depleted. with the pandemic, we have not recovered from that. with _ we have not recovered from that. with the — we have not recovered from that. with the cost of living, we are struggling. and now, with further cuts, _ struggling. and now, with further cuts, i_ struggling. and now, with further cuts, ican— struggling. and now, with further cuts, i can see the gap widening and more _ cuts, i can see the gap widening and more people falling through that -ap, more people falling through that gap, vulnerable people, disadvantaged people, people that are not— disadvantaged people, people that are not being heard, that are really struggling, — are not being heard, that are really struggling, and they are going to be impacted _ struggling, and they are going to be impacted the most, so we had to stand _ impacted the most, so we had to stand up— impacted the most, so we had to stand up and we had to go to downing street— stand up and we had to go to downing street and _ stand up and we had to go to downing street and try to raise awareness and ask— street and try to raise awareness and ask for— street and try to raise awareness and ask for the government to give us stipport — and ask for the government to give
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us support. and we know that this issue _ us support. and we know that this issue is— us support. and we know that this issue is affecting councils and communities right across the country _ communities right across the count . ., ., ., ., country. how do you feel about how nottingham — country. how do you feel about how nottingham have _ country. how do you feel about how nottingham have dealt _ country. how do you feel about how nottingham have dealt with - country. how do you feel about how nottingham have dealt with this? i nottingham have dealt with this? they've made the stakes, obviously. —— they've made mistakes, obviously. absolutely _ —— they've made mistakes, obviously. absolutely. the mismanagement has been inherited by this current councit — been inherited by this current council. i'm not sticking up for nobody. — council. i'm not sticking up for nobody, i'mjust council. i'm not sticking up for nobody, i'm just telling it how it is. nobody, i'm just telling it how it is there — nobody, i'm just telling it how it is there is _ nobody, i'm just telling it how it is. there is mismanagement, and i can see _ is. there is mismanagement, and i can see a _ is. there is mismanagement, and i can see a lot— is. there is mismanagement, and i can see a lot of that has been inherited _ can see a lot of that has been inherited. and now we've got to look at solutions. — inherited. and now we've got to look at solutions, and that is what resolve — at solutions, and that is what resolve want to do. we want to look at solutions — resolve want to do. we want to look at solutions. we want to be heard by the commissioners so we can take the voice _ the commissioners so we can take the voice of— the commissioners so we can take the voice of the _ the commissioners so we can take the voice of the people and actually help how — voice of the people and actually help how then cuts are going to be impacted. — help how then cuts are going to be impacted, and what we can do to ask nationat— impacted, and what we can do to ask national government for more help and support to be able to reduce the
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impact _ and support to be able to reduce the impact on _ and support to be able to reduce the impact on our communities, which is going _ impact on our communities, which is going to _ impact on our communities, which is going to he — impact on our communities, which is going to be devastating. one impact on our communities, which is going to be devastating.— going to be devastating. one of the callers on the _ going to be devastating. one of the callers on the nicky _ going to be devastating. one of the callers on the nicky campbell - going to be devastating. one of the callers on the nicky campbell this l callers on the nicky campbell this morning. let me take you back to birmingham city council and the chamber. we were expecting a vote on these cuts, these £300 million worth of cuts, but the councillors have decided that they are going to spend the next couple of hours debating the next couple of hours debating theissue, the next couple of hours debating the issue, because it is such a huge decision they are having to make. let's have a listen in as this debate has just started over the cuts that they are facing. the surprising — cuts that they are facing. the surprising thing _ cuts that they are facing. ire: surprising thing about any cuts that they are facing. ire surprising thing about any of this is that we are surprised, given the extent of paring back in the last 15 years in government funding. these may be the few words in defence of conservative government that we hear this afternoon. the conservative leader of shropshire county council is so fed up with the failing
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government, she has declared she doesn't even care if her party when the general election. she told her council meeting just yesterday, four years, local government has been underappreciated and underfunded, and we shouldn't stand for that. we can't carry on living hand to mouth. we really cannot. i think we can all agree with those words, because we are hearing new warnings about the forest fire raging across local government won an almost daily basis. in the last week alone, a survey by the local govenment association has warned that two thirds of communities across the country will see cutbacks to local neighbourhood services this year — waste collection, road repairs, libraries, leisure services — as councils struggle to plug the funding gap. a report warns that this sector is increasingly in a state of financial crisis, with over half the respondents to a survey
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saying they are likely to declare bankruptcy in the next five years. the financial times has warned that local authorities are preparing to sell up hundreds of millions of pounds' worth of land and buildings. a long—term funding squeeze shows no sign of being alleviated by the budget tomorrow. lord mayor, as i have already stated and i will reaffirm now, my task is to address the problems unique to this council, problems for which i apologise unreservedly. but i have to ask who will apologise for the prolonged neglect at national level that has brought so many councils to the brink? and who is going to put that right. i think the record is clear from the last 14 years that it won't be the conservative government. and that growing crisis in local government is one of the many reasons why their time is up. what we need now is a labour government that values, understands and wants
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to work with councils, a grown—up government that sees councils is a big part of the uk rescue mission after 14 years of vandalism. in the meantime, and even faced with such stark choices, we have sought to protect the most vulnerable, with the highest percentage of cuts coming in back office functions rather than in the high demand areas of adult social care and children and young families. we have safeguarded welfare delete might well be in centres and school crossing patrols. i regret that council tax bills will increase by 9.99%, and i know that the timing of the increase couldn't be worse, given the cost—of—living crisis that has been exacerbated by reckless national mismanagement of the economy. i know the uk tax burden is at a 70 year high while families across the city have faced higher levels of inflation and... there was a report last week that revealed
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that millions of people in the uk, including one in five families with children, have gone hungry what they have skipped meals in recent weeks because they cannot regularly afford to buy groceries. if the reports are to buy groceries. if the reports are to be believed, tomorrow the chancellor of the exchequer will this week pulled the plug on the household support fund, which will plunge even more families into crisis. i ask you to remember that this is a fund that this winter in this is a fund that this winter in this city has helped us support 169 food banks to provide food for thousands struggling in the city. it has funded a network of more than 300 one spaces for people struggling to heat their homes. last month it helped to feed more than 165,000 birmingham children who might have gone hungry during the february half term. while i absolutely apologise for the scale of our council tax increase, let's be clear — it is the conservative led cost—of—living
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crisis that is having the heaviest impact on families across this city. i know full well that hard pressed families in our city are struggling to make ends meet, and even as the council gets to grip with its own financial challenges, i want to assure you that we will do everything in our power to protect the most vulnerable. that's why i have fought for our council tax support scheme that means a quarter of the 461,000 households in birmingham are eligible for support, and around 75,000 of our most hard—pressed families paid no council tax at all. as i've already said, this is not a budget that any of us would want to be faced with, but we have no alternative than to face this council's challenges head—on. and we will do whatever is necessary to bring the council budget back into balance and ensure it rests on a sound financial footing. i also want to be clear
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that once these financial challenges have passed, i have absolutely no intention of seeing this council return to business as usual. we need less centralising of power and more collaboration with communities and partners. we have to focus on getting the basics right, and we must deliver the high standard of service our citizens need and deserve. just weeks after i was brought in to tackle the challenges facing this council, i delivered the annual chamberlain lecture at highbury hall. i spoke about how joseph chamberlain, a legendary figure in the city's history, the man who cleared birmingham slums and owned this city a reputation for model civic government. our collective challenge now is to restore that reputation, by first returning the council to a sound financial footing, returning the council to a sound financialfooting, and returning the council to a sound financial footing, and then returning the council to a sound financialfooting, and then by
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acting to improve the lives and life chances of people in neighbourhoods right across birmingham. a failure to do so will mean we are unable to lead the city boss might response to the grand challenges facing a — tackling climate change, alleviating child poverty, building affordable homes, racing skills, attracting investment to bring in newjobs and opportunities for all citizens. it's clear we will not succeed simply by fixing what is broken. instead, we must transform this organisation, and that mission will be underpinned by three core objectives that will be enshrined in our new corporate plan. we will share power with our communities, get the basics right, and ensure that we are accountable and ensure that we are accountable and transparent in everything that we do. birmingham has often been said to be too big to fail but also back big to succeed. you will know, this is the largest city in the
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country with a population of over1 million. it helps to secure significant investment in major events like the commonwealth games. on the reverse side, birmingham's sheer scale has made us too remote from the communities we serve. the years of austerity have led to the other centralisation of decision—making. this city, the one we are all proud to call home, is a big and diverse place, and we must be humble enough collectively to accept that things need to change. the approach the council has adopted in recent years has simply not worked and consequently our relationships with communities and partners across the city need a radical reset. it is clear that our communities will be impacted by spending reductions, as well as bearing the burden of the substantial council tax increases over the next 12 months, so it is
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only right that they are given maximum influence over how this council spends its money. we need to broaden our field of vision to incorporate views and perspectives from each part of birmingham. we cannot afford to shy away from our challenges and bringing partners with us on this journey is the only way forward. it is not a weakness to share power with our citizens and partners, so we need a wide—ranging, mature conversation with the city, and to drive this agenda i will create a new shaping birmingham's future together commission, bringing together partners and stakeholders from all corners and sectors of birmingham to shape the devolution of power agenda with our communities. in order to act differently, we will think and behave differently, incorporating views and perspectives from every part of birmingham. i absolutely get it. words are easy, and many people will need convincing that we will turn those words into action. we
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have shown in recent years, in adults and children's social care, that we can deliver transformation and improve outcomes, even in times of rising demand. our critics would rightly in my view say that we haven't built on those successes enough. in short, we have not been consistent enough. i think that's an absolutely fair criticism to make, and i do not underestimate the challenges that will come with transforming and modernising this council. i absolutely understand that we must regain trust to bring this city with us on this journey. when the commission meets for the first time, before the end of may, ourjobis first time, before the end of may, ourjob is to demonstrate a commitment and willingness to be better and to do things differently. funding will also be made available for local community groups to play their part, and we will set out a new collaborative approach to empower our communities. we will
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also commit to getting the basics right

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