For the first time since the powers were granted by the Local Government Act 1999, the British government will launch a formal inquiry into the failings of a local authority. It has been reported that Secretary of State for Communities, Michael Gove, is looking to send a former senior police chief to chair an inquiry into Labour’s bankruptcy of Birmingham City Council. The inquiry will have the power to compel witnesses to attend and give evidence, and also to compel the disclosure of documents.
Birmingham has a history of needed government intervention, with a series of commissioners sent in over the years to oversee failing services. Most recently a team of commissioners were appointed to oversee the Council’s attempt to deal with the ongoing financial crisis at the City. The financial crisis, one of many the Labour administration has overseen, is due to a potential 4th wave of equal pay claims – creating a liability now thought to be of some £870 million – and a £120 Million overspend on the rollout of the Oracle IT system – effectively leaving the City with no way to monitor its massive £3 billion+ budget.
Cllr Robert Alden, Leader of the Opposition and Birmingham Local Conservatives said,
Birmingham Local Conservatives welcome this Government intervention. It has widely been accepted that an inquiry such as this was needed, but Birmingham Labour – ever desperate to protect their brand over the City – voted against calling for such an inquiry in a timely manner and refused to write to the government on a cross-party basis requesting an inquiry which concludes by the end of next year. Given the history of Birmingham Labour refusing to be honest about their equal pay mess, such as being told about the figure before the 2023 budget but refusing to tell the rest of the council and other issues it was vital that any inquiry had the power to force the publication of details of who knew what and when so it’s good to see that included in this inquiry.
Cllr Alden continued,
Residents deserve to know how this happened. Why they are being hit with the double whammy of higher taxes and fewer services, and why did the Labour Administration ignore the warning signs all around them? The route being taken by the Labour Administration will disproportionately hit the worst of in the City, creating an environment that is less safe, less clean, and less resilient. It didn’t have to be like this though. We had shown a way back to financial security that would have saved both services and residents money by modernising the Council.
Cllr Ewan Mackey, Deputy Leader of the Opposition and Birmingham Local Conservatives added,
It should come as no surprise that a police chief is heading this inquiry as Birmingham City Council’s effective bankruptcy is one of the most catastrophic local government failings in recent history, indicated by this being the first time these powers have been used since their creation in 1999. It also demonstrates how badly Birmingham Labour have let down both residents and Council employees. Ultimately as public servants, we have a duty to all our residents, and Labour has utterly failed to properly carry out that duty to residents. Our residents have a right to know how the Labour Administration got the Council in this position, and why they are being hit with the double whammy of fewer services – such as fortnightly bin collections, dimmer streets, worse roads – and a 21% council tax rise.
