Cash-strapped Birmingham City Council will cut spending on services by £300m to balance its books.
The UK's biggest local authority will also hike council tax by 21% over the next two years from April, according to its budget proposals for 2024-25 and 2025-26.
Documents released by Birmingham alongside the budget proposals confirmed the Government has approved £1.25bn of exceptional financial support – in the form of loans that must be paid back partly through asset sales.
Council leader John Cotton apologised ‘unreservedly' for the spending reductions and council tax increase.
He said: ‘We have no alternative than to face these challenges head on and we will do whatever is necessary to put the council back on a sound financial footing.'
The local authority has warned that up to 600 posts may be axed.
Birmingham was forced to issue a section 114 notice in September.
The council is facing liabilities for equal pay claims of nearly £800m.
