During a lengthy council meeting on Tuesday, more than 50 Labour councillors voted in favor of the 2024/25 budget, which includes what the city's Conservative group leader has dubbed
"a double whammy of higher taxes and fewer services."
The council meeting, spanning five hours, outlined the need for £300 million in cuts over two years, including reductions in library services, to secure £1.255 billion in exceptional financial support loans from the central government. Additionally, a motion proposing a 9.99% increase in council tax was passed, elevating annual bills for a Band D property to £1,793.
Following the declaration of effective bankruptcy by the Labour-run council last September due to identified equal pay liabilities, estimated at £760 million, the council now claims to be on a "narrow path to financial sustainability" contingent upon implementing budget cuts.
Apologizing for the "unprecedented" cuts during the debate, council leader John Cotton emphasized the necessity of the measures to secure financial support from the government and meet the challenges set by commissioners. He acknowledged the difficulty of the situation, expressing regret over the budget's impact on citizens and communities.
The approved budget includes plans to raise council tax by 9.99% over the next two years, alongside substantial cuts to frontline services. Measures such as dimming street lights, reducing highway maintenance spending, and moving to fortnightly refuse collections aim to achieve savings.
This decision follows similar actions by other councils, such as Nottingham City Council, which recently approved cuts amid budget shortfalls attributed to central government funding reductions.
In response, Conservative group leader Robert Alden criticized the Labour-led council's handling of finances, characterizing it as a failure to address the city's economic challenges effectively. He highlighted concerns about the impact of these decisions on Birmingham residents and urged for a more robust plan to rectify the situation.
Labour group leader John Cotton acknowledged the mistakes made in managing the council's finances and expressed commitment to addressing the issues. He emphasized ongoing efforts to stabilize the IT system and resolve equal pay risks, while seeking to prioritize support for vulnerable groups and essential services.
Conservative Party chairman Richard Holden criticized Labour's management of Birmingham City Council's finances, accusing them of driving the city's finances into disarray. He criticized the significant council tax increase and highlighted job losses and service cuts as consequences of Labour's governance.
Communities Secretary Michael Gove weighed in on the situation, condemning Labour's mismanagement and praising the stewardship of West Midlands mayor Andy Street in contrast. Photo by Richard Rogerson, Wikimedia commons.