Chamber calls for clear plan to minimise impact of council crisis

Business leaders in Greater Birmingham today called for a clear plan of action to ensure the impact of Birmingham City Council's financial crisis is minimised for residents and businesses.

The Council announced yesterday it would stop all but essential spending after effectively declaring itself bankrupt amid an outstanding £760m bill to settle equal pay claims.

The largest local authority in Europe also blamed the implementation of its IT system for its financial situation.

However, Cllr John Cotton, leader of the Labour-run council, insisted vital services would be protected.

Greater Birmingham Chambers of Commerce said workable solutions must be found to ensure the impact of the crisis is minimised.

Henrietta Brealey, chief executive of Greater Birmingham Chambers of Commerce, said: “There are clearly huge questions to be urgently answered regarding the impact of this development on support and services for the city, its businesses and most vulnerable residents and what has led the Council to this point.

“Birmingham City Council must move quickly to present a clear and credible plan for minimising the fallout from this situation and working back to an even keel.

“As a city, Birmingham and it's business community tell a very different story to the current difficulties of its local authority.

“It's one of the fastest growing city economies in the UK, with a transformed city centre and extensive regeneration and investment underway.

“It is attracting record levels of FDI and continuing to feel the positive impact of last year's successful Commonwealth Games and the opportunities created by HS2, while being home to both longstanding anchor institutions and attracting new leading businesses.

“As the city-region's largest independent business organisation, we see these strengths and the pride our business community has in this city every day.

“We will work closely with firms in the city to champion their needs and to ensure their views are understood and acted on in order to find workable solutions moving forward.”