Birmingham’s new administration is being urged to avoid repeating the financial failures that helped drive the Council into bankruptcy under the previous Labour administration, with a report confirming almost £33 million of planned savings forecast to go undelivered this year.
Cllr Robert Alden, Leader of the Birmingham Conservative Group, made the call after a report to Cabinet revealed that around 30% of planned savings are not expected to be delivered this year, continuing a decade-long pattern of failure established under the previous Labour administration.
In 2017, auditors described Labour’s delivery of services as an “enduring problem” and issued statutory recommendations demanding improvements. Almost a decade later, the Council is still failing to deliver its savings. That is what the new Liberal Democrat, Green and Independent coalition need to change, to deliver financial stability for residents.
Cllr Robert Alden said: “Failure to deliver savings was a major reason for Labour’s 2023 bankruptcy, which left a £240 million budget gap that had to be filled through asset sales and borrowing. This was in addition to the £760m equal pay liability. The new administration must learn from that disaster and not repeat the mistakes that helped cause it. Birmingham residents have already paid a heavy price through higher Council Tax and cuts to services. They deserve better than another £33 million of savings that exist on paper but fail to materialise. Which will mean higher bills and cuts to frontline services".
“Auditors and ourselves demanded action almost a decade ago. How many more warnings does this Council need before it gets a grip? This is the last chance saloon.”
