Birmingham council boss says ‘catastrophic issues have been tackled’

The Labour-run council declared itself effectively bankrupt back in September 2023 after becoming engulfed by a perfect storm of issues.

These included the equal pay debacle, the disastrous implementation of an IT system, inadequate budget setting and demand led pressures.

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Labour councillors have also argued that funding cuts during the previous Conservative government have played a role in the crisis.

What followed in a bleak chapter in the city’s history was an alarming wave of cuts to local services and council tax hikes, as well as a range of property sales.

Government-appointed commissioners, sent in to oversee the council’s recovery, wrote in their most recent report that the authority still faced a number of risks.

But they also acknowledged that progress had been made in tackling these challenges, as well as “enhanced resilience and improved performance in some areas”.

Discussing the report at a finance meeting this week, council boss Joanne Roney was optimistic about the authority’s future after two years of turbulence.

“I think the [commissioners’] letter is a fair reflection of the progress we’ve made,” the managing director told councillors.

“There is clearly more to do; there is no complacency here.

“But I would like to note that some of those catastrophic issues that needed to be resolved have been tackled.

“We now enter a new year and a new financial system […] that puts us in a very strong position to accelerate further improvements.”

On the council’s recovery journey, she said: “We have got the equal pay agreement in place, and we have started the work around not only service transformation but also council-wide transformation.

“I am really clear about what Birmingham Council should be as a place to work in, but also as a leading local authority.

“[This is] a large, complicated council for which I am responsible for.

“But I remember this council of old, where it was world-leading.

“There’s no reason why we shouldn’t get back to that position – that’s not going to happen overnight.”

‘Financially fragile’

The commissioners warned in their report that significant challenges remained for the council, including equal pay, the bin strike, and the council being ‘financially fragile’.

But positive steps were praised, such as progress in areas such as housing and children’s services, as well as a framework agreement on equal pay being reached.

“We are pleased to record that progress is being made […] as a result of the determination and resilience being demonstrated by the political leadership,” they wrote.

They added that there was a “sense of purpose being embedded in the organisation” by Joanne Roney and the management team.

When it comes to finances, the council said last month that the 2026-27 budget gap had reduced from £83 million to £1.7 million and from £127 million to £10 million for 2027-28.

December also saw council leader John Cotton praise the government’s multi-year settlement, arguing that it would provide a huge cash boost for the authority over the next three years and help fund local services.

But the commissioners previously wrote that finance remains a risk despite budget planning ‘improving’.

“The asset sales programme is progressing,” they said. “But the scale of the challenge is immense, and transformational savings are still lacking.”

Councillor Cotton reacted to the report by arguing that the organisation had “turned a corner” but added: “There is still much to do before we become a well-run council that delivers good services.”