Plans to cut a further £110 million from service provision and axe 900 jobs have been announced by Birmingham City Council as the local authority faces up to an unprecedented financial crisis.

Spending proposals for 2013-4 represent the latest stage in a six-year programme that will see the council’s core budget cut by 50 per cent and staffing levels slashed by about 34 per cent.

Council leader Sir Albert Bore issued a doom-laden warning, declaring that his Labour administration would begin “systematically decommissioning services” in 2014-15.

Birmingham would become a less pleasant place to live and work in, he warned.

The council finds itself caught in a toxic cocktail of savage cuts in Government grant and growing demand for children’s and adult social services.

Birmingham will have lost £310 million in grant between 2010-11 and 2016-17 as a result of the Chancellor’s austerity measures. The city has been disproportionately affected by the cuts programme because it receives more of its income in grant than many other authorities to reflect high levels of social deprivation.

Sir Albert claimed Birmingham’s grant reduction to be twice the national average and he intends to invite all political parties and the business community to campaign for a fairer deal.