Birming became the latest council to file a Section 114 Notice- they are the 7th and another 14 are likely to follow. Whilst the bill for equal pay has been a major factor and the IT fiasco another we need to look at the structure and purpose of local councils – what are they there for? Growing costs of social care, falling business rents and government austerity cuts are all major factors mentioned in the press. I would add executive pay, now many services and education are out sourced the pay of the nobs should be reduced, they cannot claim great efficiency! Some councils are bust due to property speculation – surely this is wrong, they are service providers, not speculators. They are forced to take extreme measures to benefit rate payers due to government cuts. Meanwhile important, if not essential services, like swimming pools and libraries are shutting. Car parking fees rise and visits to town centres fall, and thus business rates.
Their plush new city centre offices could be let out in part as many council jobs could be done from home.