PM says Birmingham council massively mismanaged finances

Prime Minister Rishi Sunak has said Birmingham City Council massively mismanaged its finances, after it declared itself essentially bankrupt.

Emergency measures have been announced by the government, including commissioners overseeing the authority.

Mr Sunak told BBC Radio WM city residents had had a flavour of what has happened under Labour's administration.

During an interview, he also refused to commit to building the second phase of HS2 to north west England.

Questioned why Birmingham residents should pay higher council tax because of the council's financial crisis, the prime minister said people in the city had "got a glimpse" of what happened when Labour was in charge.

Mr Sunak, talking to presenter Rakeem Omar during a round of BBC radio interviews, said the government had been "engaging regularly" with the authority in recent months about its pressures and "repeatedly expressed concern over its governance arrangements".

"But ultimately the whole point about local councils [is] that they are devolved, they manage their own finances," he said.

Mr Sunak said he thought people in the city would hold the council to account.

He was also asked whether he thought the authority should sell assets, such as its shares in Birmingham Airport, or if such jewels in Birmingham's crown should be protected.

"It's not for me to intervene in the local process that's happening," Mr Sunak replied.

Council leader John Cotton has apologised to the people of the city for its financial woes, but he insisted he had "no prior notice" of its "bankruptcy" crisis.

Labour's deputy leader Angela Rayner has said the crisis in local government has been caused by the Conservatives' "wrecking ball" and local authorities reporting distress needed support from the Department for Levelling Up.

Mr Sunak also told WM the government was "urgently working" on ways to stop attacks by American bully XL dogs in the wake of a fatal attack in Staffordshire.

"We're working with experts to define the breed of the dog," he said.

He said police and experts were in discussions and reiterated plans to ban the breed by the end of the year.

"We're taking action to try to stop these attacks and protect the public," he added.

Rising costs have led to speculation the stretch of the high-speed rail line from the Midlands to Manchester could be axed.

The PM was asked for his views on HS2, after it was pointed out to him West Midlands mayor, Conservative Andy Street, has said HS2 had to go ahead.

Mr Sunak replied: "Where I completely agree with Andy is that we invest in transport infrastructure, because that's a key part of how we level up, how we create jobs and spread opportunity around the country.

"There are spades in the ground right now at the moment making sure that we complete the first part of this line from Birmingham to central London and we're absolutely getting on with that."

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