Birmingham faces more budget cuts amounting to £150 million, and a 7.5% council tax rise in 2025/26, continuing from their prior bankruptcy.
A council member thinks recovery is far off. Council tax will rise about 7.5% in 2025/26. They plan more budget cuts, almost £150 million. The council’s story isn’t over yet.
In September 2023, the council admitted financial problems. They issued a Section 114 notice. Government officials were sent to help. This news shocked everyone. People worried about the future.
A leader said action was needed for financial strength. Other councils also face issues. John Cotton mentioned equal pay problems. They also had a failed IT system launch. Service demand and funding cuts were issues too.
Critics attacked the council after the notice. In February 2024, residents learned about the budget. This was after the Section 114 notice. The council planned tax increases and huge cuts.
Libraries, arts, bins, and parks faced changes. Adult care, flood work, and pest control were also impacted. John Cotton apologized for the cuts and tax increase. He said they faced challenges directly. The council needed stable finances.
March 2024 brought a tough moment, the budget passed. The meeting was tense and full of blame. Protesters gathered. People worried about city culture. One leader said things would get worse. Another councillor criticized past promises.
Later, the council began its recovery slowly. Some hoped the new government would help. Despite progress, residents still fought the cuts. Closing adult social care day centers caused anger. Four centers would close. Services would move to five remaining centers.
One woman said she had “nothing to live for” if closed. Her son was scared, noted another woman. Officials said they needed savings. Remaining centers needed full use. They develop activities outside the centers too. All with 21st-century service models.
They said everyone needing a center could still use one. No staff would lose their job. January 2025 brought a concerning auditor report. It showed the reasons for the council’s crisis.
The report mentioned IT system failures. It listed inadequate housing services. They found troubles impacting children with disabilities. Equal pay issues resulted from bad management. There also existed a not reporting bad news culture too.
Auditors did say that the council’s recovery efforts seemed proper. February 2025 saw the latest budget plans. It impacts waste, libraries, parks and lighting, too. Adult care and youth services are also impacted. The council is still struggling.
Cotton stated the council made good recent progress. He talked about improving and working on the budget too. Cotton said the budget addressed care and housing issues. Cotton believes they work well with the government. He declared the government helps them rebuild. The financial settlement provides a boost.
