Care home owners in Birmingham have lost their legal fight to force the council to pay more money to look after elderly residents.

The Birmingham Care Consortium (BCC) had claimed the city council did not meet the true cost of places in a care home.

They said homes could be put out of business because social services chiefs wanted to impose "unviable, uncommercial" rates.

The BCC, along with a group of residents and relatives, went to the High Court earlier this month in an attempt to force the council into paying more money to look after the elderly.

'Financial suicide'

They argued that the council's stance was "unlawful, uncommercial and reasonable" and would lead to the closure of private care homes in the area, to the detriment of local elderly people.

Unless there is a proper increase, it will be a slippery slope to bankruptcy for many care homes

BCC member David Hulston

But on Thursday, Mr Justice Stanley Burnton, sitting in London, dismissed the BCC's application for a judicial review.

He said the BCC had "failed to establish" that the rates offered by the council were less than fair and that its stance would lead to a failure to provide long-term care for those in need.

Mr Justice Burton also refused to quash the council's decision not to make any new placements at homes belonging to BCC members who had not agreed to extend existing contracts with the council on its terms and conditions.

BCC members had argued that to renew existing contracts on the council's terms would be "financial suicide".

'Lose homes'

Speaking after the ruling, Mike Gimson of the BCC said he was "very disappointed".

"This decision puts the elderly people in Birmingham in jeopardy.

"They are worried about losing their homes."

He added: "We intend to go to the Court of Appeal and failing that, the Court of Human Rights in Strasbourg."

BCC member David Hulston, who owns the Elizabeth Lawrence Rest Home, said the future looked bleak for care home owners.

"Unless there is a proper increase, it will be a slippery slope to bankruptcy for many care homes," he said.

"Residents must come first and we will fight tooth and nail to make sure our homes don't close, but in the long-term people will go out of business."