Birmingham City Council set out financial position in crunch meeting

During a cabinet meeting, councillors discussed potential saving routes out of financial crisis.

Author: Hannah RichardsonPublished 12th Dec 2023

Birmingham City Council's leadership have met today and confronted the stark reality of a 300 million pound budget deficit over the next two years.

The deficit is set to obliterate services and lead to major job cuts within Europe's largest local authority.

During a cabinet meeting, the Leader of Birmingham City Council, John Cotton, admitted the council faces "a very tough challenge ahead" to find 300 million pounds of saving over the next two years.

Council Tax was a strong topic throughout the meeting with Councillor John Cotton confirming that through delegated authority, he along with the Chief Executive Deborah Cadman have written to the Government to apply for Exceptional Financial Support to allow council tax to be raised by more than the agreed maximum of 4.99%.

Leader John Cotton will also ask Government for permission to allow the authority to sell assets and properties to meet the costs of redundancies, equal pay liability payments and other extensive costs.

Four Labour councillors - John Cotton, Brigid Jones, Jayne Francis and Sharon Thompson - will be made responsible for overseeing the asset sales by the council.

Councillor Robert Alden criticised the move and has requested that the discussions to decide what to sell be held in public.

Council Leader John Cotton said: "Let me be absolutely clear, we are facing a budget gap of 300 million pounds and are having to seek exceptional financial support from the Government to help take this forward.

"I am not in anyway underplaying the seriousness of this challenge.

"I and other members of the cabinet are well aware of the challenge that sits in front of us.

"We have a lot of work to do to deliver those proposals."

"There is a January, 7, target set for the council to produce a credible plan to meet the 300 million saving targets, and that they see that as achievable.

Opposition Leader, Councillor Robert Alden (CONS), said: "There is nothing in the report to suggest that the cabinet have a clear commitment to meet the Commissioner's target.

"This is a damming statement of affairs that the council have got themselves into."

Commissioners have requested a credible plan be in place by the council on January, 7.

Hear all the latest news from across the UK on the hour, every hour, on Greatest Hits Radio on DAB, smartspeaker, at greatesthitsradio.co.uk, and on the Rayo app.