The word on the street is that Birmingham is no longer bankrupt (while some say it never was). With a bit more financial flexibility, Birmingham City Council prepared to unleash the first balanced budget in three years last month (Tuesday, February 24), but failed to pass the plans in its budget-setting meeting.
Finally, after reconvening yesterday (Monday, March 2), the largest local authority in Europe passed the budget vote 40 votes to 37, with two amendments to the budget being approved, an extra £25m for highways improvements and extra money for youth services. However, with an election looming in May, the Labour-led council will hope locals feel the effects fast.
What will the new budget bring?
The £4.4bn budget for Birmingham balances the books for the first time in three years—with a council tax rise of 4.99%, a far more reasonable rise compared to the 17.5% jump from the previous two budgets, and an extra £130 million for frontline services like cleaner streets, tackling fly-tipping and protecting libraries.
This additional funding will enable the council to:
- Invest an extra £40 million in cleaner streets
- Increase funding to step up fly-tipping enforcement
- Protect libraries and keep them open for longer, with Community Hubs open for an extra day, every week
- Create a £1 million culture fund, to support to develop our City of Music bid, and celebrate community events from St Patrick’s Day to Ramadan Streets Festival
- Spend a further £1 million for Youth Services to tackle knife crime
- Help further action on tackling exempt accommodation
“We have reached an important milestone in the council’s recovery and that is down to the sheer hard work that has been undertaken here in Birmingham by members and officers, supported by commissioners,” said Leader Cllr John Cotton.
“Now – thanks to two years of decisive action, tough choices, and a great deal of hard work by members, officers, and Commissioners – the Section 114 is gone, and we have ditched, once and for all, the tag of ‘Bankrupt Birmingham’.
“We have closed a £300 million budget gap, tackled our equal pay liabilities, and are getting to grips with improving the services that the council provides for the residents of Birmingham.
“I am determined that the mistakes of the past will not be repeated, as we drive further efficiencies to deliver better services and value for money for council taxpayers – there will be no backtracking on the progress that we have made over the last two years.
“I’m ambitious for Birmingham’s future. Now we will step up our work with West Midlands Mayor and Government to invest in our communities, delivering the homes, jobs and services that the people of this city deserve.”