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

Director of Public Health

Royal Borough of Greenwich
Up to £131,210
The Public Health department is at the heart of the council’s business. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Regeneration and Growth

Plymouth City Council
£68,387 - £74,411 (MFS and relocation available, pay award pending)
This is a unique opportunity to lead our award-winning development team and directly deliver hundreds of millions of pounds of projects. Plymouth, Devon
Recuriter: Plymouth City Council

Director of Adult Social Care

Wiltshire Council
£119,390 - £127,137
Join us as the Director of Adult Social Care and make a real difference to people’s lives. Wiltshire
Recuriter: Wiltshire Council

Assistant Director Planning, Performance & Engagement

East Sussex County Council
up to £97,700
With strong local communities, unspoilt countryside and vibrant coastal towns, East Sussex offers an exceptional quality of life to many. East Sussex
Recuriter: East Sussex County Council

Director of Finance & Commerce

Lancashire County Council
Up to £114,339
You will play a critical role in driving the organisation through complex change and innovation. Lancashire
Recuriter: Lancashire County Council
Linkedin Banner