Birmingham City Council must make another £195 MILLION of cuts and there is no easy way out

Broke Birmingham City Council is to identify cuts and savings totaling a staggering £195m for next year, with warnings that a bailout is unlikely to be on the way. The staggering sum will exceed this year’s budget, which has sparked campaigns and protests.

Officials and advisers have been tasked with spending the summer working out where the ax can fall in already beleaguered services. The news comes amid a grim financial update shared with council leaders who meet next week to discuss the implications.

Speaking to BirminghamLive about the latest news, Chief Commissioner Max Caller, appointed last year by then minister Michael Gove to oversee the business, said it again showed the need for swift action.

READ MORE: Birmingham’s rubbish collections confirmed in sweeping update

While he did not comment on speculation that a future Labor government could water down the Birmingham approach – either by bringing in a new commissioner with a different, longer-term strategy or a significant bailout – he said he did not believe there is a “white knight” on the way to “save the city”.

“It is in the hands of councilors to save the city. There is a future for the city, but getting there will require hard work and tough decisions. In my experience, if you go any longer, things get worse, it drives away the pain.”

He added: “The council needs to be honest with itself and its residents and this report clarifies the position.”

In her update to senior councillors, finance director Fiona Greenway reveals that the cuts they need to find next year have now increased by £50m due to the rising cost of caring for and safeguarding children with complex needs, alongside the costs of payments wages and inflation. costs.

That means they have to find in all the cuts and savings a total of £194.5m. This will dwarf cuts already made or under consultation for this year, which totaling £149.5m were described at the time as “unprecedented”.

Cuts to arts services, proposed closures of libraries, adult day centers and early help services, cuts to social welfare services, budget cuts to children’s services, decimation of the youth service, less park and road maintenance, reduced street lighting…very little escaped the hatchet this year.

Ms Greenway’s medium-term financial report to the board’s cabinet on Tuesday (July 23) said the board’s financial position this year was clear and that looking ahead to next year “continues to be a significant concern” for the corporate leadership team, cabinet. and commissioners.

“This increase in the savings target for the 2025/26 financial year only makes the challenge harder. An acceleration of work is needed to identify additional savings (for next year and the year after) to support the council’s return to financial stability. .”

She says asking the government for more freedom – for example, allowing it to sell more of its assets and use the money raised to fund services – “is not currently a feasible option”.

Commissioners commented on the report, adding: “The deteriorating financial position is a massive problem for the council that needs a response. The Council should build on the principles in this report and adjust the current plan and approach. This should be completed by the beginning of the year. August.”

They also criticized cost overruns in two significant projects – the cost of several public realm works in the city center (including resurfacing in and around Victoria Square) and the cost of relocating the city’s CCTV control operation.

“Both of these highlight the failure of governance as well as financial control issues… it also underlines the need to deliver current savings programs as the delay only adds to the challenge facing the council.”