‘Pragmatic and open discussion’ needed as council reveals budget cuts – Chamber
Business leaders in Greater Birmingham said “a pragmatic and open discussion” must take place to understand the impact of Birmingham City Council’s cuts, after the struggling local authority announced plans to slash £300m from its budget over the next two years.
In a briefing yesterday, the council released details of how it intended to cut £150m from its budget in 2024-25 and the same amount in 2025-26.
It follows the issuing of a section 114 notice last year after an equal pay claim of up to £760m and a reported £80m overspend on an IT system.
Independent commissioners were brought in to help run the council, while permission was also sought from central government to raise council tax by 10 per cent in each of the next two years.
Cost-cutting measures announces yesterday included the introduction of fortnightly waste collections from 2025-26, dimming streetlights in a bid to save around £1m a year and cutting spending on highways maintenance to save up to £12m.
Adult social care will also be cut by £23.7m in the next financial year, while the Children's Young People and Families department will be forced to find £51.5m savings.
The council hopes to renegotiate children’s travel contracts, which it says could save £13m a year.
Greater Birmingham Chambers of Commerce is seeking talks to understand the implications of the cuts on the local business community.
Chief executive Henrietta Brealey (pictured) said: “We are continuing to work through the implications for the business community.
“While Birmingham continues to be a vibrant place to live, work, start and grow and enterprise, local authorities are important stakeholders in making our cities great places to do business.
“That includes ensuring support for the most vulnerable in society. The significant financial strain Birmingham City Council is facing is well known.
“What's critical now is a pragmatic and open discussion about the impact that these cuts will have and what can be done to best mitigate the most challenging of them.”
