Ministers have been warned it is ‘difficult to overstate’ the financial challenge facing Birmingham City Council, as the authority looks to annually save £250m.

A letter from chair of the Birmingham Independent Improvement Panel, Sir John Crabtree, to local government secretary Greg Clark today said there was ‘still much to be done’ at Birmingham if it is to achieve its four year savings plan.

The panel was launched to challenge and support Birmingham following a review by Lord Kerslake requested by then council leader Sir Albert Bore and the communities secretary.