Bust council spent £500k on diversity

A FAILING council spent nearly £500,000 on "diversity" schemes despite heading for bankruptcy, ministers have revealed.

- Jonathan Walker

Cabinet Office Minister Esther McVey has vowed that cash-strapped local authorities will be forced to stop wasting money instead of depending on bailouts from taxpayers.

She said: "This is a wake-up call to our public sector leaders." Labour-run Birmingham City Council has announced drastic cuts after effectively declaring bankruptcy, including ending all arts funding, switching to fortnightly bin collections and dimming street lights in a bid to save £300million. It also plans a 21 per cent council tax rise over two years.

Ms McVey, dubbed the Minister for Common Sense, said: "Birmingham City Council, through serious financial mismanagement, has got itself into eye-watering debt.