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Birmingham council tells local homes funding is safe

Council-funded care services in Birmingham are safe, despite financial concerns in the area, the council leader has said.

Protected by law, social care, along with waste collections and protecting the vulnerable will continue to be run and funded by the Council, its head John Cotton told the BBC.

Birmingham needs to settle a £760m bill for equal pay claims as well as pay for a huge overspend on IT, leaving the council with a £87 million budget shortfall.

Commenting, Professor Martin Green of Care England said that Birmingham has joined a number of financially broken councils, including Woking, Thurrock, Slough, Croydon and Northamptonshire – all of which have already issued Section 114 notices. These are issued when a local authority has judged itself to be in financial distress and unable to balance its budget.

Green added: “As many as one in ten local authorities have already served, are looking to serve, or have taken urgent action to mitigate serving Section 114 notices. [This] represents a drastic need for full reform into the current practices of how the Government supports, and governs, local councils.” 

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