THE GMB union has demanded government intervention after Birmingham City Council announced the largest budget cut in local authority history today.

The council revealed plans to tackle a £300 million budget shortfall over the next two years and a sale of £1.25 billion of assets to repay a government bailout loan after the authority declared effective bankruptcy last September.

It confirmed plans to raise council tax by 21 per cent over two years and to cut up to 600 jobs. Street lights will be dimmed, waste collections become fortnightly, burial costs will rise.