‘Bland’ report conceals depth of budget crisis Councillor calls for ‘warts and all’ document on council cuts

BIRMINGHAM City Council Labour bosses have been accused of glossing over the recent budget crisis by publishing “a very short and very bland” report ahead of a major debate next week.

Councillors have been ordered by district auditors to discuss their failure to meet savings targets, which left a £37 million black hole in the 2016/17 budget, when they hold their monthly meeting on Tuesday.

But rather than a “warts and all” dissection of what went wrong, the debate is being launched with a fourpage summary of the current budget situation.

It merely outlines the financial situation in broad terms, the legal position and asks the council to commit to making the right level of budget savings next year.

The biggest headache for the authority has been promised savings of £20 million from social care costs which failed to materialise.

Other major costs for the council included the slow delivery of “efficiencies”.

The Labour-run council has been forced to raid its reserves to balance the books this year, but must now make extra savings in the 2017/18 budget to get back on track.

Opposition Conservative deputy leader Randal Brew (Northfield) said he wanted to see evidence that council officers had identified the mistakes made and taken steps to ensure they were not repeated.

“We were struck at how short and how bland the report is,” he said.

“As councillors are responsible, so it is important we know what went wrong, warts and all.

“There is no indication lessons have been learned.”

He added: “We are all adults, we that any know mistakes are made and I would prefer to see a warts and all report.”

But Labour council leader John Clancy (Quinton) replied that it was getting increasingly difficult to make extra savings year after year.

“We have taken £590 million out of the budget since 2010 and are heading towards £800 million. It is getting more difficult each year,” he said.

He said that councils up and down the country were struggling to deliver further savings for the seventh year running – but added it would be one of the most scrutinised council budgets in the country.

He said: “We have the Local Government Association sponsoring an independent financial review and the Birmingham Independent Improvement Panel overseeing us. This is the most overseen budget in recent times,” he said.

Cllr Clancy was appearing before the corporate governance scrutiny committee where he was quizzed by backbenchers on his performance.

He also revealed a major announcement on Chinese investment in the city was imminent following a £2 billion housing development pledge he secured from a developer on his Far East visit.

“We are signing something specific,” he said, “I can’t go detail but watch this space, soon.”

He added that the Chinese had shown great enthusiasm for Birmingham and see is as ‘a place where they can make a great return’ on their investment.

It is important we know what went wrong, warts and all Conservative deputy leader Randal Brew

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