Heather Jameson 19 April 2023

Birmingham face £40m bill for chaotic IT contract

Troubled Birmingham City Council’s financial recovery has hit a massive setback after details of a chaotic contract designed to streamline its accounts emerged.

The cost of an IT and HR contract with Oracle has soared from £19m to nearly £40m and is set to be delivered years late.The system, designed to transform payments for the council, was due to be delivered by December 2020.

However, after the council demanded several amendments to the system it is now unlikely to be fully functioning until next year.

In the meantime, the council’s payment system is in chaos, with the finance department unable to track who owes them money.

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