Labour boss of bankrupt Birmingham City Council celebrating his birthday in New York
THE boss of Labour’s biggest council — which has gone bankrupt and stopped all but essential spending — is celebrating his 50th birthday in New York.
John Cotton, who was picked for the role by Labour boss Sir Keir Starmer, began the jaunt as Birmingham announced it cannot balance its books.
The council leader was criticised as he held an interview via video link from the Big Apple and it was announced that a Section 114 notice had been filed — meaning the city cannot meet its liabilities.
All new spending will stop immediately, except for protecting vulnerable people and statutory services.
There is also speculation that residents face a ten per cent hike in council tax.
A source said: “Cotton would have known a declaration of bankruptcy was coming. But he still chose to fly off on his birthday jaunt.”
Meirion Jenkins, shadow council member for finance, said: “If you’re leader of Europe’s largest metropolitan authority and the city goes bankrupt you have to come back and be at the helm.
“It’s hard to believe he knew nothing of the bankruptcy until the finance minister announced it.”
Mr Cotton was selected by Labour’s NEC to run the council in May after a report branded the party group “dysfunctional”.
The council now faces an equal pay liability of more than £1billion and a financial gap in this year’s budget of around £87million.
Speaking by video link, Mr Cotton said the council would “continue to deliver on essential services”.
Rishi Sunak taunted Sir Keir about the crisis in the Commons yesterday.
The PM said: “Labour in Birmingham are failing hardworking people, losing control of taxpayers money, and driving their finances into the ground.
“They’ve bankrupted Birmingham, we can’t let them bankrupt Britain.”