New report finds cuts at Birmingham City council could've been avoided
It's after it was effectively declared bankrupt over an unpaid equal pay bill
A new report has found that millions of pounds worth of budget cuts at Birmingham City Council could've been avoided.
The Audit Reform Lab research group claims a "catalogue of problems and errors" by the council, IT suppliers and auditors mean the problems could have been exaggerated
The City Council is trying to save £300m before April 2026 after essentially declaring itself bankrupt.
The authority said it was taking responsibility for failings that had contributed to its current difficulties.
However, the independent report by The Audit Lab, commissioned by the Unite, Unison and GMB trade unions, suggests that cuts to front-line services and selling off profit-making assets could cost the council far more in the long-term.
Meanwhile the authors, based at the University of Sheffield, said a 21% rise in council tax over two years was hurting local residents right now.
The authors are calling for a more considered approach to cuts, instead of raising council tax.
It's over equal pay claims were put at £760m in June 2023 and were largely blamed for the council issuing its Section 114 three months later, triggering the government at the time to appoint commissioners to oversee large-scale cuts.
Commissioners were appointed by government.
Dr James Brackley, lead author of the report, said the intervention at the council should be extended until 2028
The Audit Lab itself cited an estimate of closer to £250m rather than £760m and called for sweeping cuts to services and sales of anything other than loss-making assets to be paused.