What happens when the bins aren't collected, the roads are full of holes and the libraries are shut - because the council's gone bankrupt? That's the dilemma facing local government. Europe's largest local authority, Birmingham, has just issued a notice saying it's effectively gone bust. Many others have done the same or are about to. So what has gone wrong with the system? Is the way we pay for local services in dire need of reform? Professor Peter Murphy, Director of the Public Policy and Management Research Group at Nottingham Trent University, tells Phil and Roger how bad things are and what needs to change   

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