Council’s leadership wants Brummies’ views on future budgets

The coalition running Birmingham Council has said it wants residents’ views on future budget decisions after a ‘punishing’ era in the city’s history.

The local authority declared itself effectively bankrupt back in 2023 amid financial woes, sparking a wave of cuts to local services and council tax hikes.

Frustration was later heightened by the bins strike, which started last year in January and left huge heaps of rubbish piling up across the city during its height.

The previous Labour leadership managed to set a balanced council budget earlier this year before a coalition – including the Liberal Democrats, Greens and various independents – took over following the local elections.

A new council report acknowledged positive progress had been made when it came to the authority’s recovery – but it also warned financial pressures have not disappeared.

“It costs around £120 million each year simply to meet inflation, pay costs and the needs of a growing population,” it revealed.

The report continued that a forecast shows budget gaps of £4.9 million in 2027/28, £13.7 million in 2028/29 and £88.2 million in 2029/30 if action is not taken.

“Demand and complexity in adults’ and children’s social care, homelessness and temporary accommodation remain major pressures,” it said. “The right response is therefore neither complacency nor a return to short-term cuts.

“It requires disciplined investment, sustained transformation and a relentless focus on prevention, productivity and value for money.”

The council’s political leadership, which took over in the summer, has also said it is committed to giving a residents a “greater say” in future budget decisions.

Cllr Roger Harmer (Lib Dem, Acocks Green), leader of the council, told a meeting today that the authority was carrying out resident engagement to hear Brummies’ priorities and stressed more would be done in the future.

Deputy council leader Cllr Julien Pritchard (Green, Druids Heath and Monyhull) welcomed the fact that a draft medium term financial plan was put out “early” in October.

“That’s great because it gives us the chance to engage across the council and also with residents […] and for the engagement to be genuine because we’re doing it so far in advance,” he said. “That’s a stepping stone for future years when we can do even more of that.

“That really does show, as an administration, our priorities in terms of […] involving residents in that budget setting and doing a timeline that allows us to do that.”

He added the council’s financial position “is better than it has been for years” but stressed the administration will not be complacent.

Cllr Chris Garghan, the cabinet member overseeing finance, said the authority’s leadership is not proposing to return to a “system of short-term cuts and salami slicing which has previously taken place” despite forecast budget cuts.

He said: [The council] is planning ahead, being realistic about its challenges and taking a disciplined approach to securing long-term financial sustainability.

“Whilst risks remain, there’s still significant work ahead.”

Cllr Jex Parkin, Reform group leader, welcomed the administration’s talk of taking a “collaborative approach”, saying: “I do hope that continues to be the case.

“We’ll find out in due course how much common ground we have.”

Conservative group leader Cllr Robert Alden said: “It’s really important the council doesn’t treat the budget as a one-yearly thing and worry about 2029/30 when it gets to 2029.

“That will lead to the mistakes this council has made in the past where you salami slice everything and you don’t actually protect the frontline services residents rely on.”

‘We are rebuilding trust’

The coalition now running the council has said its major priorities for the next few years include safer streets, warm homes, culture, youth services, parks and cleaner neighbourhoods.

And it also wants to see improved financial stability translate into “visible improvements” in everyday life amid issues such as fly-tipping and unreliable bin collections.

“[The proposed budget] supports a cleaner city through expanded street cleansing, targeted clean-up activity, stronger enforcement, improved equipment and a more responsive approach to fly-tipping,” the new report said.

Cllr Harris Khaliq, the cabinet member overseeing waste and street cleansing services, said residents he had spoken to had described being “punished” by the decisions taken by previous council administrations.

“They ask me when will bins be collected, will the fly-tipping be cleared, when will the streets be cleaner, when will they feel proud of where they live,” he said.

“Getting Birmingham’s finances under control is not the goal – it is a means to a goal, the real goal is improving residents’ lives.

“When we came into office, years of underinvestment had taken their toll. Residents lost confidence, neighbourhoods were neglected and [council] officers were left with a mountain to climb.”

“This administration is investing heavily in cleaner streets,” he added. “We are rebuilding trust between residents and their council.”

Several factors, such as the equal pay debacle, helped spark the financial turmoil at Birmingham Council while Labour councillors also pointed the finger at funding cuts during the Tories ’ time in government.

The new report pointed out however that work to tackle pressing issues was now “showing results” and said historic equal pay liabilities are close to resolution.

By Alexander Brock | Local Democracy Reporting Service