And they wont be the last. What does it mean for Council Tax Payers in the city . And as concerns grow for the Financial Futures of dozens of other councils, is this more evidence of crumbling britain . We will speak to conservative and Labour Councillors and an expert on town halls� growing financial woes. Also tonight, hundreds of women can now take legal action against the makers of a Contraceptive Coil that women say have left them maimed and in constant pain. We will talk to the lawyer representing 200 patients and a woman who says she was forced to have a hysterectomy to get the coil out of her. And the row between government and big tech which could mean that the Message Services millions of us rely on could stop working. And the government plans to tighten Benefit Rules to encourage more disabled people off benefits and into work. We will get a reaction from a charity. And do send us a message on whatsapp. Are you in receipt of benefits and keen to work, or an employer hoping the planned changes might make it good evening. Another council has gone bankrupt. This time it is labour run Birmingham City council which serves a Million People. If you are thinking this doesnt matter because you dont live in birmingham, there are a growing number of people who would argue it does, and that todays financial collapse as part of a wider and growing problem. Birminghams woes follow on from Conservative LedCroydon Council in south london declaring bankruptcy three times in two years, thurrock in essex, and a string of others including slough and woking. More are on the brink, including stoke on trent. So, how does a councils bankruptcy affect those who live within its boundaries and how many more town halls could find themselves facing similar crises . We will be discussing all of this in a moment. First, here is joe. It has long been in the making but now how have Birmingham City councils finances collapsed . The city centre has recently been regenerated. It is the home of big business, like the uk hq of hsbc. It has had a Commonwealth Games and will soon benefit from hs2, but it cannot pay its bills. The home of Black Sabbath is having its own black tuesday. Now there are two unique reasons for it. First, an enormous bill for equal pay claims. The Labour Council has already paid out £1. 1 billion. It still has £760 million outstanding. And it says the cost of those pay claims is increasing at a rate of £5 million to £14 million per month. Secondly the councils disastrous new it system. It was expected to cost £19 million. But after three years of delays it could now cost up to £100 million. So what will todays announcement mean . Now it is good for people who live in the area. In other areas receive Central Government commission is coming and take over the running of the council, they make sweeping cuts and redundancies, they sell off assets and at the same time see some areas having special permission for council tax to drop by as much as 10 so we dont know which of those things are going to happen in birmingham but it is a fair bet that more people in birmingham, none of the outcomes are positive. These section 114 notices, councils effectively declaring bankruptcy, were rare, but not any more. Since 2018 weve seen them in English Councils across the spectrum including thurrock, which had been investing in 53 solar farms, slough, northamptonshire, woking and croydon, three times in just two years. Mismanagement may well be part of the problem but there is also the wider context of cuts. 13 years in which not only has the amount of funding going into local government changed and been reduced, by about a0 , so, most councils have seen their spending power drop by about one third, but not only has the amount of funding reduced, but the amount of funding reduced, but the way in which councils are funded has changed so this is a story we do not tell so often. Councils have been made to be much more reliant on local income. Council tax, been made to be much more reliant on local income. Counciltax, Business Rates, charging for leisure services, entering into commercial activities, some of which we have seen go wrong. The government argues that it is up to councils to manage their finances responsibly and points out that they have given them extra cash this year and next. So where is the money coming from and how has that changed since 2010 . Well, the income comes from council tax and has steadily risen over the past decade. But at the same time the income from Central Government including retained Business Rates has fallen. You can see those bars tapering off. Although there was added funding during the pandemic. Councils have, experts argue, faced a double whammy of less money and more demand for their services, especially Adult Social Care, as the population ages. Calls for reform are growing. Some advocate better oversight, new tax raising powers or just more hard cash. The leaders of kent and Hampshire County councils, both solid, decent conservative leaders wrote look to the government is not so long ago saying that this cannot go on. I think that right across the board politically in local government, there is a sense that you cannot go on trying to deliver 100 then in then £120 worth of services with £80 or £90. Local government in the uks second city may be effectively bankrupt, but is this a Tipping Point nationwide . Analysts estimate two dozen authorities could soon follow. Those In Westminster are notjust worrying about what on earth has happened, but where in the country is next. We did ask the government for a spokesperson on this they declined. We also asked for an interview with the Labour Leader of Birmingham City council. They declined also. Lets speak to alex yi, a conservative councillor in since 2015, and peter marland, Labour Leader of Milton Keynes council and chair of the local Government Associations resources board, and stuart hoddinott, Senior Researcher from the institute for government. Welcome to all of you. Alex, who and what is to blame . And, as you said in the opening statement, the Council Settled the equal pay settlement of 1. 1 billion, 11 years ago, there was a cabinet report saying how to deal with it, labour cancelled his plans when it took control in 2012 and that was when the current leader during the labour cabinet, it has categorically been this Labour Administration that has, for ten years, and instead, this Labour Administration that has, forten years, and instead, in action and local mismanagement that has created this second liability of 760 million, a decade of inaction thatis 760 million, a decade of inaction that is directly led to this and it is Councillor Cotton who is responsible. Is Councillor Cotton who is responsible. Is Councillor Cotton who is resonsible. ,. ,. ,. , responsible. You have not mentioned the cut of 4096 responsible. You have not mentioned the cut of 4096 in responsible. You have not mentioned the cut of 4096 in government responsible. You have not mentioned the cut of 4096 in Government Grants | the cut of 40 in Government Grants to local authorities between 2010, and 2020. , to local authorities between 2010, and2020. ,. , and 2020. This is categorically nothina and 2020. This is categorically nothing to and 2020. This is categorically nothing to do and 2020. This is categorically nothing to do with and 2020. This is categorically nothing to do with budget and 2020. This is categorically| nothing to do with budget cuts. These section 114 clearly says the situation is not due to funding cuts from the government and even a National Labour party themselves wrote saying that the problems in birmingham are not due to funding cuts because crucially they had a plan, they cancelled it, they did nothing for ten years and overseeing this has been councillor coton. Is it realistic to think that a 40 cut in Central Government grants would have nothing to do with the situation in birmingham . The problem in birmingham situation in birmingham . The problem in birmingham has situation in birmingham . The problem in birmingham has been situation in birmingham . The problem in birmingham has been decades situation in birmingham . The problem in birmingham has been decades in. In birmingham has been decades in the making, not 5 10 years. It is a very the making, not 5 10 years. It is a very big the making, not 5 10 years. It is a very big council with a huge expanse of services very big council with a huge expanse of services but on the other side the councils are facing huge financial the councils are facing huge financial pressures. Birmingham has taken financial pressures. Birmingham has taken a financial pressures. Birmingham has taken a huge cut in its budget, and most taken a huge cut in its budget, and most councils are now facing the fact of most councils are now facing the fact of having to deal with, as your piece fact of having to deal with, as your piece said. Fact of having to deal with, as your piece said, huge demand wise and they have piece said, huge demand wise and they have not got the money to fund it. They have not got the money to fund it lots they have not got the money to fund it lots of they have not got the money to fund it. Lots of councils are now on the precipice it. Lots of councils are now on the precipice of it. Lots of councils are now on the precipice of financial catastrophe. You are precipice of financial catastrophe. You are what is to blame . Precipice of financial catastrophe. You are what is to blame . There have been specific you are what is to blame . There have been specific issues you are what is to blame . There have been specific issues in you are what is to blame . There have been specific issues in birmingham, l been specific issues in birmingham, the equal been specific issues in birmingham, the equal pay been specific issues in birmingham, the equal pay settlement been specific issues in birmingham, the equal pay settlement dating been specific issues in birmingham, i the equal pay settlement dating back to 2012 the equal pay settlement dating back to 2012 but the equal pay settlement dating back to 2012 but you the equal pay settlement dating back to 2012 but you cannot the equal pay settlement dating back to 2012 but you cannot ignore the equal pay settlement dating back to 2012 but you cannot ignore the to 2012 but you cannot ignore the context to 2012 but you cannot ignore the context in to 2012 but you cannot ignore the context in which to 2012 but you cannot ignore the context in which these to 2012 but you cannot ignore the context in which these Problemsl Context in which these problems arise, context in which these problems arise, the context in which these problems arise, the duchess context in which these problems arise, the duchess of context in which these problems arise, the duchess of grant context in which these problems i arise, the duchess of Grant Funding from central arise, the duchess of Grant Funding from Central Government, arise, the duchess of Grant Funding i from Central Government, increased reliance from Central Government, increased reliance on from Central Government, increased reliance on council from Central Government, increased reliance on council tax from Central Government, increased reliance on council tax funding from Central Government, increased reliance on council tax funding to i reliance on council tax funding to meet reliance on council tax funding to meet locci reliance on council tax funding to meet Local Authority reliance on council tax funding to meet Local Authority obligations. | meet Local Authority obligations. The council meet Local Authority obligations. The council itself, meet Local Authority obligations. The council itself, and meet Local Authority obligations. The council itself, and we meet Local Authority obligations. The council itself, and we would | the council itself, and we would have liked to speak to the leader but he was not available, has blamed this huge equal pay bill and the implementation of the new it system which was meant to cost 19 million and could end up costing 100 million. It appears that they are blaming everybody but themselves. If you put this into context we talk about you put this into context we talk about over you put this into context we talk about over a decade of austerity, and had about over a decade of austerity, and had this impact been ten years ao, and had this impact been ten years ago. They and had this impact been ten years ago, they might have been able to absorb ago, they might have been able to absorb back hit with reserves and the ability absorb back hit with reserves and the ability to take a bit more council the ability to take a bit more council tax, the ability to take a bit more counciltax, people the ability to take a bit more council tax, people forget that Council Council tax, people forget that council tax, people forget that council tax is capped at 2 for locat council tax is capped at 2 for Local Authority so it is a bit of one Local Authority so it is a bit of one and Local Authority so it is a bit of one and the other and these issues have been one and the other and these issues have been decades in the making. The labour have been decades in the making. The labour party have been decades in the making. The labour party have been very clear on this. Labour party have been very clear on this they labour party have been very clear on this. They replaced the leader of the council not more than six months ao the council not more than six months ago but the council not more than six months ago but also, the council not more than six months ago but also, the fact that councils are on ago but also, the fact that councils are on the ago but also, the fact that councils are on the precipice. I think that into the are on the precipice. I think that into the broader picture, if other councils into the broader picture, if other councils take big hits and they are looking councils take big hits and they are looking at councils take big hits and they are looking at equal pay claims or a planning looking at equal pay claims or a Planning Appeal gone wrong, or an increase Planning Appeal gone wrong, or an increase in Planning Appeal gone wrong, or an increase in temporary accommodation which increase in temporary accommodation which means millions on their budget, which means millions on their budget, councils do not have the reserves budget, councils do not have the reserves or budget, councils do not have the reserves or the money to absorb those reserves or the money to absorb those costs any more as they may have those costs any more as they may have done those costs any more as they may have done ten years ago. Mex those costs any more as they may have done ten years ago. Alex yip, what will the have done ten years ago. Alex yip, what will the council have done ten years ago. Alex yip, what will the council have have done ten years ago. Alex yip, what will the council have to have done ten years ago. Alex yip, what will the council have to stop l what will the council have to stop doing for local people . In what will the council have to stop doing for local people . What will the council have to stop doing for local people . In terms of this bein doing for local people . In terms of this being a doing for local people . In terms of this being a link doing for local people . In terms of this being a link to doing for local people . In terms of this being a link to the doing for local people . In terms of this being a link to the cuts doing for local people . In terms of this being a link to the cuts from. This being a link to the cuts from Central Government for councils it is a separate issue. It is because of the Labour Mismanagement for ten years. It is there an action that has caused this equal pay situation to carry on for a second time, that is a crucial distinction. Secondly in terms of the wider financial mismanagement if you get into talking about putting things into context, youre right about the it system. There are appalling situations