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

Head of Corporate Development

Devon & Cornwall Police
Starts at £75,201 rising by yearly increments to a maximum of £84,534 per annum
We are welcoming applications for the role of Head of Corporate Development with Devon & Cornwall Police based at Exeter Devon
Recuriter: Devon & Cornwall Police

Payroll Project Specialist

Essex County Council
Up to £148.8800 per day
Payroll Project Specialist x2£148.88 PAYE / £193.782 Umbrella daily rate Up To 6-Month Fixed Term (with potential extension) Essex County Council - England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Business Development Officer (MaaS)

Essex County Council
£36341.0000 - £42754.0000 per annum
Senior Business Development Officer (MaaS)Fixed Term, 2-year contract with potential for extension Full Time, 37 hours per week£36,341 to £42,754 per England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Finance BP - Epping Forest District Council

Essex County Council
Up to £55307.0000 per annum
Senior Finance Business Partner - Epping Forest District CouncilFull-Time, Permanent 37 Hours per Week £55,307 + £10,000 Market Supplement Closing Dat England, Essex
Recuriter: Essex County Council

Mechanical Design Engineer

Durham County Council
Career Grade 9 to 12 (G9 £35,412 - £39,152) (G10 £38,220 - £41,771) (G11 £40,777 - £45,091) (G12 £44,075 - £48,226) per annum
The Construction Consultancy Services (CCS) team provide client-side construction consultancy services across a range of professional disciplines to d Durham
Recuriter: Durham County Council
Linkedin Banner