William Eichler 06 July 2023

Birmingham City Council stops all non-essential spending

Birmingham City Council stops all non-essential spending  image
Image: ROD Photography / Shutterstock.com.

Birmingham City Council has announced that it will stop all non-essential spending to deal with its equal pay liability and the fallout from the implementation of its new IT system.

The city council is facing a bill of up to £760m to settle equal pay claims and problems with the roll out of the Oracle ERP system are set to cost the local authority £100m.

The council has appointed new advisers and will commission reviews to look into the root causes of its financial issues.

Birmingham City Council leader Cllr John Cotton said: ‘I've been clear from day one that I will take whatever action is needed to address the substantial challenges facing the council and these measures are essential to grip the situation – particularly in terms of financial controls, organisational capacity and improved governance.

‘We will be open and transparent throughout this process and the independent reviews and judge-led inquiry will ensure that there is proper accountability for these failings.’

Birmingham City Council deputy leader Cllr Sharon Thompson added: ‘This is one of the biggest challenges this council has ever faced, and we must understand how the issues have arisen to prevent a repeat in the future.

‘Given the scale of this challenge, we must impose mandatory spending restrictions. But as we have done throughout the cost-of-living crisis, we will continue to focus on tackling social injustice and inequality across our city. We will do everything we can to protect the services our residents rely on.’

Sign up here to receive our free daily news and jobs bulletin.

SIGN UP
For your free daily news bulletin
Highways jobs

Group Manager

North Yorkshire Council
£58,239 - £67,030
A welcome from the Corporate Director of Children and Young People Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Group Manager (FAST)

North Yorkshire Council
£58,239 - £67,030
A welcome from the Corporate Director of Children and Young People Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Senior Practitioner - Leaving & Aftercare, North Essex

Essex County Council
£48205 - £57988 per annum
Interviews will be held W/C 25th May 2026.Essex County Council understand how important flexibility and wellbeing is for our colleagues working acros England, Essex, Colchester
Recuriter: Essex County Council

Group Manager (FAST)

North Yorkshire Council
£58,239 - £67,030
A welcome from the Corporate Director of Children and Young People Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Technician (Accident and Data)

Derbyshire County Council
Grade 8 £29,719 - £31,691 per annum
This dedicated team monitors, investigates, and analyses road traffic collisions and collision data. Matlock, Derbyshire
Recuriter: Derbyshire County Council
Linkedin Banner