By james art 
The BBCThe beleaguered council lacks the ability to solve its problems without outside help, according to commissioners charged with overseeing its recovery.
Birmingham City Council effectively declared bankruptcy in September last year and is now undergoing £300 million worth of service cuts.
In a critical report, commissioners said the council was letting residents down.
Council leader John Cotton said progress was being made on improvements and the authority was engaging constructively with the new government.
In September, the prime minister said there was “no magic wand” to solve the government’s financial crisis.
Critics of the current approach suggest, however budget cuts worth tens of millions could be avoided.
In a letter to commissioners appointed by the last government, local government minister Jim McMahon called for a “more equal” partnership but stressed it was important the council continued to make “important and timely decisions at this critical stage”.
In their first report looking at the council’s progress, commissioners said they were “under no illusions that more issues will be revealed” as their work continues.
While acknowledging that every council is under financial pressure, they said that does not excuse the position Birmingham City Council finds itself in.
“The city may have delivered a magnificent Commonwealth Games, but in terms of day-to-day operations it is failing its citizens in so many areas,” they said.
The commissioners added that it would require “painstaking attention to detail and tracking down every mistake and failure” to fix the problems in the beleaguered local authority.
Their report, produced in April, said: “There are many talented and hard-working staff at every level of the council and the organization welcomes challenges from commissioners… but at this stage the council lacks the capacity and ability to take the necessary steps to address its problems without external support.”
Commissioners described the council’s waste collection and street scene services as “too expensive” and “not fit for purpose”.
They said that despite being given significant powers by the government, they chose not to fully exercise them and instead chose to manage the council as it sought to improve itself.
Conservative Opposition Leader Robert Alden said: “Labour’s salami-slicing has brought services to a standstill and failed to make the necessary savings or transform the council into a modern, fit-for-purpose institution.
“This miserable failure was at every turn due to the failure of the Labor leadership in Birmingham.”
The leader of Birmingham City Council, Labour’s John Cotton, said there was more to do to ensure the authority became financially sustainable, but that progress was being made.
“We continue to engage constructively with the new government,” he said.
Mr Cotton added: “It remains clear that the speed of change needs to increase further as further savings are identified and we transform services.
“Our new managing director, Joanne Rowney, is focused on this challenge and there will be no concessions as we work together to get the council back on track.”
The council said it agreed an improvement and restoration plan in April, the first part of which has been implemented.
A program to improve waste services has been introduced, it added, including the purchase of a new fleet.
Analysis
By Rob Major, Political Editor, BBC West Midlands
The Government says it is discussing with Birmingham City Council a change in the way it deals with its financial problems.
We’ve known for some time that senior figures in Birmingham want to change the approach to dealing with their financial problems and today the Government has indicated it is open to the idea.
No big bailout is on the cards, but an extension to the time the council has to balance its books is under discussion and could mean an extra year to get its house in order.
Those calling for a change of tack argue that it will ease some of the short-term pain of large-scale service cuts and allow the new government to bring into force the benefit of wider changes to local government funding and social affairs.
But critics will point out that the council has a track record of failing to deliver the savings it promises, and this delay will mean the pain will last longer and ultimately cost more as a result.