The Conservatives have attacked Stoke-on-Trent City Council's new Labour administration after the city's financial woes were laid bare on Monday (4th September).

They suggested the council should look at slashing pay or staff perks to meet the shortfall in its finances.

In a statement issued this week, the council revealed an £8.5m funding gap which it says could effectively force it to become bankrupt.

The authority said without significant support from the government, there is a possibility it won't be able to continue running many services.

Prior to the local elections in May, Labour had been out of power in the city for eight years.

In that time the number of children in care almost doubled and hundreds of millions of pounds of savings had to be made at the behest of the Conservative austerity government.

However, Tory group leader Cllr Dan Jellyman accused Labour of ducking difficult decisions and called on them to slash staff pay to help cover costs.

Councillor Dan Jellyman called for the council to slash staff pay to help cover costs (Image supplied).

He said: "Just over 100 days in power and Labour have declared the city closed for business.

"The political report brought forward is an attempt to duck tough decisions and act as a get out of jail free card for Labour's un-costed electoral promises made during the local elections.

"The growing pressures in children and adult services are ones that all local authorities are facing.

"But the choice this Labour council is making is to look to declare bankruptcy, instead of taking on their union paymasters and make the necessary changes to generous terms and conditions that are paid to council staff.

"Initial reforms would generate over £1 million saving in its first year alone, with this increasing year on year. This was one saving we had proposed when in power, but Labour have rejected it."

Cllr Jellyman also reiterated previous criticism that Labour has been dishing out special positions to its own councillors, at a significant cost to the taxpayer.

Cllr Jellyman also said that Labour has been dishing out special positions to its own councillors (Nub News).

He said: "They are spending £90,000 on unnecessary special positions for Labour councillors and have spent council underspends this year on their failed attempt to clean up the city within 100 days.

"If they were serious about investing in early prevention and to reduce the number of children in care, these underspends would have been spent in those areas to help close the budget gap.

"Issuing such a notice for a budget that is two years away will sap confidence from private investors in the city, it will cost resident jobs in the long run and lead to a decreasing tax revenue for the city going forward.

"We've always said that Stoke Labour didn't want the city to succeed, and it's taken them just over 100 days to prove what we've always said was right."

Labour's Cllr Alastair Watson, cabinet member for finance and corporate services, said: "Since coming into office in May we've been scrutinising all spend by the council and it's become very clear that we've inherited a very perilous financial situation.

"We've hit the ground running in these four months – getting on top of illegal dumping and clearing a longstanding fly-tipping backlog that's been plaguing residents; prioritising early intervention and prevention services such as a new family hub model to provide better, more sustained social care; delivering a five-year investment programme into council housing; and tackling anti-social behaviour in our communities.

"We've done this while insisting on tight spending controls in response to the financial position we've inherited. So far, we've reduced a potential £13m budget gap down to £8.5m."

He sad the council is currently spending more money than it can afford, and the current situation is unsustainable.

He called on the government to take heed and intervene before it's too late.

It follows news yesterday that Birmingham City Council has effectively declared itself bankrupt, and is now being forced to axe all non-essential spending.

Cllr Watson said: "We're calling on government to listen to our situation – we are not reckless with public money, we spend wisely for the benefit of local people.

"If we cannot afford to provide the services we deliver in these circumstances, then the system is broken, not local government.

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