![\"Unite](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/05\/0_JS271631160.jpg\")
Unite the Union general secretary, Sharon Graham, has accused the Government of ‘profiteering’ over Birmingham City Council’s ‘\u00a33.9 billion debt’ and claims that is contributing to the bin strike (Image: Ian Forsyth\/Getty Images)<\/p>\nUnion general secretary Sharon Graham claimed the Government was making money out of Birmingham’s debt – something the Labour administration has deniedUnite the Union general secretary, Sharon Graham, has accused the Government of ‘profiteering’ over Birmingham City Council’s ‘\u00a33.9 billion debt’ and claims that is contributing to the bin strike (Image: Ian Forsyth\/Getty Images)<\/p>\n
The Government has strongly denied claims by the Unite union that it was \u2018profiteering\u2019 from its loan to Birmingham City Council<\/a>.<\/p>\n The union alleged the financial issue was playing into the crippling bins strike – the latest blow to befall the crisis-hit authority, which declared itself effectively bankrupt and has been stung by expensive fiascos surrounding an IT contract<\/a> and the Perry Barr housing project<\/a>.<\/p>\n Unite general secretary, Sharon Graham accused the Labour Government of making money out of the council’s huge debt, when she spoke to BirminghamLive ahead of crunch talks involving conciliation service Acas on Thursday, May 1.<\/p>\n READ MORE: Union urges council boss to honour offer or quit as bin strike talks resume<\/a><\/strong><\/p>\n She said the \u00a33.9 billion debt was \u2018owned by the Government\u2019 and claimed it was adding a 0.8 per cent levy above the usual 4.3 per cent gilt rate, which she said it did not need to do.<\/p>\n Mrs Graham said: \u201cThere\u2019s a \u00a33.9 billion debt. Maybe \u00a3250 million was to do with any equal pay cases.<\/p>\n \u201cI wrote to deputy Prime Minister Angela Rayner some time ago to say, part of the problem was there should be a restructuring of the debt. I was worried the Government was profiteering from the debt.<\/p>\n \u201cNormally on a Government loan, you pay the gilt rate which is around 4.3 per cent.<\/p>\n \u201cThe Government, by its own admission, added on 0.8 per cent, which essentially it said was for admin costs.<\/p>\n \u201cBut 0.8 per cent on \u00a33.9 billion, you\u2019re talking about \u00a39 million a year [*BirminghamLive makes 0.8 per cent of \u00a33.9billion, \u00a331.2 million a year] they\u2019re paying more than what they should be paying.<\/p>\n \u201cNow they are not saving \u00a39 million a year in terms of what they are doing.\u201d<\/p>\n Get the latest BirminghamLive news direct to your inbox<\/strong><\/a><\/p>\n She continued: \u201cFor me the Government owns the debt. They are charging Birmingham<\/a> City Council the gilt rate plus.<\/p>\n \u201cWhat they could do, they could cut the debt. They could restructure the debt. They certainly could take the 0.8 per cent off the debt.<\/p>\n \u201cThey are loaning it for more than they borrowed it for. They are making money on the debt.<\/p>\n \u201cThis whole thing they are doing is saving them peanuts in comparison to what this debt is.\u201d<\/p>\n