In response to the 900 jobs losses and cuts of £110million to Birmingham City Council's budget for 2013/2014, the Department for Communities and Local Government has issued the following statement.
"Next year's funding for councils will be announced shortly. Councils still account for a quarter of all public spending - £114bn of taxpayers money - so they must help act to reduce the inherited deficit.
"This year, while Birmingham pleads poverty, it is hoarding £112 million in reserves, getting almost £400 more per household than the national average to protect frontline services, been given a £1.5bn city deal, £22m Growing Places Funding, an Enterprise Zone and £7.5 million in New Homes Bonuses.
"The Chancellor has exempted councils from the reductions Government must make in 2013-14. This will give councils like Birmingham time to find sensible savings by transforming frontline service delivery as well as reducing fraud, procuring better and sharing back offices. In addition taking up the Government's third council tax freeze fund offer is potentially worth over £200 to their Band D residents."
Tony Rabaiotti from Unison has told ITV Central that Birmingham City Council faces a very difficult new year following the announcement that 900 jobs will be slashed because the council needs to save £110 million next year.