City facing £25m Games shortfall
No more funding coming down the line Council now set to raid contingency pot
BIRMINGHAM is facing a £25 million shortfall in funding for this summer’s Commonwealth Games, it has been revealed.
And the council is likely to be forced into using contingency funds if the missing cash is not found soon, bosses say.
But it is now considered ‘‘extremely unlikely’’ that any further contributions will be secured.
The total cost of the Games is expected to be around £778 million, with Birmingham City Council and other partners from around the region expected to provide around £184 million of this.
However, council papers this week revealed how partner contributions to fund the Games have not met expectations, with only £50 million of the budgeted £75 million accounted for thus far.
“As has been previously reported to this committee, the council’s initial expectation was that partner funding contributions towards the council’s £184.2m share of the cost of the Games would be secured to the value of at least £75 million, including contributions from the West Midlands Combined Authority, regional LEPs, local universities and the Midlands Engine,” a report for the Resourced Overview and Scrutiny Committee said.
“Despite extensive engagement over a number of years at both political and senior officer levels, to date it has only been possible to secure partner contributions amounting to £50 million, with secured contributions from the West Midlands Combined Authority (£25 million), Greater Birmingham & Solihull LEP (£20 million) and Community Infrastructure Levy (£5 million).
“It is anticipated that the entirety of this contribution will have been drawn down by March 31, 2022. Given the substantial impact on public finances as a result of the Covid-19 pandemic in particular, it is considered extremely unlikely that any further partner contributions will be secured.
“In recognition of the increasing likelihood of a £25 million shortfall in partner funding contributions, Cabinet agreed on July 27, 2021 that this amount should be set aside from the overall Corporate Capital Contingency to mitigate the risk of this funding shortfall and ensure that the council’s commitments under the terms of the Host City Contract could continue to be met, and to ensure that the delivery of the capital investment required for the Games was not undermined.”
Birmingham is on course to deliver the ‘‘best Commonwealth Games there’s ever been’’, the leader of Birmingham council said earlier this month.
Cllr Ian Ward said the city is planning for a ‘‘full stadia’’ despite the ongoing coronavirus pandemic, and confirmed that major construction projects remain on schedule.
Birmingham is due to host the flagship event in just six months, with the opening ceremony due to take place on July 28 at the revamped Alexander Stadium.