Laura Sharman 09 November 2016

Birmingham Council to face 'mammoth' task of balancing £49m overspend

A £49m budget overspend by Birmingham City Council will mean balancing the books next year will be a ‘mammoth’ task, its improvement panel have warned.

The Birmingham Independent Improvement Panel said the serious overspend for 2016/17 was a result of ‘flawed planning and insufficient delivery’ of the council’s revenue budget

In a letter to local government minister Sajid Javid, the panel said: ‘We report that flawed planning and insufficient delivery of the council’s 2016/17 revenue budget will result in a serious overspend for the year.

'As a consequence the council faces a mammoth task to prepare a balanced budget for2017/18 and, as the council has very limited general reserves available, this potentially places at risk its future success.

‘The council understands that long-term financial stability will be achieved only by delivering a highly ambitious transformation agenda. If this is to be successful the council must simultaneously make significant savings, invest in new ways of operating and develop an organisational culture that is fit for purpose.’

The panel did highlight the progress being carried out by the council since its last update in April, including actively addressing the concerns raised by the Kerslake Review and appointing four assistant council leaders to drive change.

Chief executive of the council, Mark Rogers, said: ‘The continuing and profound reductions to local government funding mean that the budget setting process has become increasingly challenging.

The panel is correct in describing the setting of the 2017/18 budget as a “mammoth task” and it is one that we are not going to shy away from. We are equally determined to continue the wider work to improve ourselves and will not lose sight of our responsibilities to improve safeguarding and education services.’

For your free daily news bulletin
Highways jobs

Head of Service – Adults Services South, Safeguarding & DoLS

Bolton Council
It is an exciting time to join us as Head of Service for Safeguarding, DoLS and South District. Bolton, Greater Manchester
Recuriter: Bolton Council


Royal Borough of Greenwich
£28,470 - £44,628
Kick-start your career with an apprenticeship based in Royal Borough of Greenwich. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Social Worker – Enhanced Social Care Support In Reach

Essex County Council
£32,787 to £44,826
We currently have an opportunity for a Social Worker to join our Countywide Enhanced Support In Reach Team. Essex / Countywide
Recuriter: Essex County Council

Procurement Assistant Manager x 3

Essex County Council
We are looking for an experienced procurement professional to fulfil this truly wide ranging role. Chelmsford, Essex / Anywhere Worker
Recuriter: Essex County Council

Group Accountant-Business Services

City of Bradford MDC
£42,614 to £47,665
Bradford is currently on a journey of change delivering the ambitious outcomes of our Council Plan. Bradford, West Yorkshire
Recuriter: City of Bradford MDC

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.