William Eichler 19 August 2024

Questions raised over Brum’s decision to issue s114

Questions raised over Brum’s decision to issue s114  image
Image: Juan Garcia Hinojosa / Shutterstock.com

An academic report has raised questions about the reliability of Birmingham City Council’s £760m equal pay liability figure and called for an investigation into the decision to issue a section 114.

The Audit Reform Lab (ARL), a collective of academics who investigate auditors, argue that the council’s financial problems were mostly the result of austerity and the ‘disastrous implementation’ of a new Oracle IT system.

The report, which was co-commissioned by the trade unions UNISON, Unite and GMB, claims that the decision to declare effective bankruptcy was initially attributed to a £760m equal pay liability which was ‘speculative and unaudited’.

Auditors Grant Thornton said the ARL’s report contained ‘inaccurate and misleading’ information.

The auditor said that it was inaccurate to attribute the council’s financial problems solely or even predominantly to the troubled roll out of Oracle, adding that service pressures and equal pay claims ‘play a greater part in the council’s financial issues.’

Referring to the £760m equal pay liability figure, Grant Thornton’s statement said: ‘Both officers and commissioners have confirmed that this is the best estimate available of the council’s liability on the available information.’ The statement added that the audit work is ‘ongoing’.

Responding to the auditor’s criticisms, Dr James Brackley from ARL said: ‘We circulated our report with all interested parties and took considerable care to ensure factual accuracy throughout the report. This included a lengthy discussion with Grant Thornton about our findings.

‘It is our view that the objections raised by Grant Thornton relate to points of interpretation not fact and we can see nothing in their comment to the press that contradicts any of the points made in our report.’

Check out: The financial crisis in Birmingham City Council.

SIGN UP
For your free daily news bulletin
Highways jobs

Pause Practice Lead

Oxfordshire County Council
£54495 - £57864
Are you an ambitious, creative and influential leader who is passionate about reducing the number of children being removed into care by supporting women to bring about change in their lives? About Pause Pause works with women who have experienced re Oxford
Recuriter: Oxfordshire County Council

Multi Schools Council Quadrant Facilitator

Essex County Council
£29121.00 - £34259.00 per annum + + 26 Days Leave & Local Gov Pension
Multi Schools Council Quadrant FacilitatorPermanent, Full Time£29,121 to £34,259 per annumLocation
Recuriter: Essex County Council

Early Help Navigators (MASH Service)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,737 - £49,365 per annum
Early Help Navigators (MASH Service)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Residential Worker

Durham County Council
£30,024 - £33,699 plus allowances
WHAT WE DO MATTERS The team at Aycliffe Secure Centre provide a caring, trauma informed and aspirational environment for young people aged between 10 Newton Aycliffe
Recuriter: Durham County Council

Occupational Therapist

Oxfordshire County Council
£38220 - £40777
Help us deliver our vision for adult social care in Oxfordshire About us At Oxfordshire County Council, you do not just work for us… you learn, grow, and thrive with us. Whatever your career aspirations are in adult social care, we are here to supp Banbury
Recuriter: Oxfordshire County Council
Linkedin Banner