DAILY MAIL COMMENT: A chilling glimpse at life under Labour
Families have to operate within a budget, as do governments, as do businesses. So why should it be any different for local authorities?
Labour-run Birmingham City Council going into effective bankruptcy with debts of £760million shows a cavalier disregard for the prudent handling of public money.
Failure to get to grips with an equal-pay lawsuit hanging over the authority, plus an over-budget, botched IT system have contributed to this financial meltdown.
And it is the people of Birmingham who must pay the price. Only core services such as child protection and social care will be maintained. All other spending will be curtailed. Yet the council’s leadership seems to admit little or no blame. It’s as if it were an act of God, rather than the result of chronic mismanagement.
This is symptomatic of a wider malaise within local government. Birmingham is the fifth English council to issue a bankruptcy notice in recent years, with another 26 said to be on the brink.
Labour-run Birmingham City Council going into effective bankruptcy with debts of £760million shows a cavalier disregard for the prudent handling of public money
A worker clears the street of rubbish in Birmingham city centre on September 5, 2023
The detailed reasons have varied. With some it has been reckless investments, others have simply refused to cut their cloth according to their financial width.
But in every case, the culprits are looking to central government for a bailout.
Not every ailing council is Labour controlled, of course, but the majority are – offering a vision of how life could be with Sir Keir Starmer in Downing Street.
Since Ken Livingstone’s profligate Greater London Council, Labour has been synonymous with municipal waste and sky-high council taxes. The Birmingham debacle shows the party still can’t be trusted to control the public purse strings.
Customer disservice
The advent of digital banking has for many been hugely beneficial, allowing us to manage our money without the hassle of visiting a local branch.
But for millions, especially the elderly, online accounts remain both confusing and intimidating, not least through the increased exposure it brings to cyber-fraud.
That most of those will be loyal customers doesn’t seem to bother the banks, who for a decade have been shutting branches at a rate of 50 a month. A staggering one in eight is now expected to close this year, leaving those reliant on face-to-face services more isolated than ever.
The sector has promised to fund ‘banking hubs’ in communities devoid of branches. But so far, a paltry seven have been set up.
Shouldn’t the greedy banks just come clean and admit they believe the traditional high street branch is now dead – and with it the once treasured notion of decent customer service.
Benefits everyone
Boosting economic growth and reducing the national debt mountain are two of Rishi Sunak’s five promises to the public.
But without bringing some of the shocking 2.5million people who languish on sickness benefits back into the workforce, those goals will be tough to achieve.
If even a fraction found jobs, it would ease labour shortages, increase productivity, slash the £26billion long-term incapacity and illness bill, and swell tax receipts.
So the Government is right to press ahead with plans to encourage those with mental and physical health problems back to work.
Assessments will take more account of the possibilities of home-working. With today’s technology, it’s surely not impossible for many to take on at least some paid employment – or face docked benefits.
Of course, the Left will accuse ministers of being cruel to the vulnerable. But welfare dependency is not just unfair to taxpayers who pick up the bill for state handouts. It can be just as crushing to the morale and life chances of those who rely on them.
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