Birmingham Council hails recovery despite £88m budget gap warning
Summarised from 2 outlets · Updated 22 Oct, 11:02 · Archive
Birmingham City Council's leadership says finances are improving, though it faces a forecast budget gap of £88.2 million in 2029/30 unless action is taken.
Birmingham City Council's leadership has said the authority's finances are much improved despite warnings over future budget gaps. The council declared itself effectively bankrupt in 2023 after being engulfed by a financial crisis, followed by widespread cuts to services, hundreds of asset sales and council tax increases.
A minority coalition administration that took over in summer has acknowledged progress has been made on the council's recovery. Council leader Roger Harmer said the council is close to a balanced budget for this year and the following two years. 'I cannot stress enough how much of an improvement that is on the challenges faced in recent years,' he told cabinet members.
However, a new report warned that financial pressures remain. It costs around £120 million each year simply to meet inflation, pay costs and the needs of a growing population, the report revealed. A forecast shows budget gaps of £4.9 million in 2027/28, £13.7 million in 2028/29 and £88.2 million in 2029/30 if action is not taken. Demand in adults' and children's social care, homelessness and temporary accommodation remain major pressures.
How it is being reported
- Birmingham Council's leaders hail recovery journey despite forecast of £88m black hole on horizonA forecast shows Birmingham Council faces a budge gap of £88.2 million in 2029/30 if action is not takenBirminghamLive · 22 Oct, 10:37
- Birmingham Council’s leaders hail recovery despite forecast £88m black holeThe council declared itself effectively bankrupt back in 2023Express & Star · 22 Oct, 02:00
In this story: Birmingham City Council · Roger Harmer · Liberal Democrats · Birmingham
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