City raids reserves for £5m cost-of-living fund as misery looms

MILLIONS of pounds will be taken from the council’s coffers to set up a ‘cost of living programme’ as inflation, the ongoing energy crisis, and the effects of the ‘mini-budget’ continue to affect Birmingham’s residents.

Nearly a week after protests at the Conservative party conference held in the city centre, cabinet members at Birmingham city council agreed on Tuesday to take £5 million from the council’s financial resilience reserve (FRR) to fund the impacts of the cost of living emergency.

This is on top of the £12.6 million household support fund; an extra £1.3 million emergency top-up fund for struggling families and pensioners; and the energy rebate scheme.

In the report, the council said their initial priority areas for action will include: increasing benefits take up and money advice; increasing the supply of goods of food banks; linking up libraries as warm spaces; reducing council costs via energy efficiency savings; and supporting council staff.

A ‘Cost of Living Strategic Response Group’ will be set up, comparable to the pandemic, to coordinate the voluntary sector and the NHS , to assist in fast-tracking the scheme.

Ian Ward, leader of Birmingham city council, said: “I made the intention to declare a cost of living emergency last month to bring forward this report urgently in order that we can begin to mitigate some of the impacts.

“There are already over 300,000 people across Birmingham living in relative poverty with many more highly exposed by this crisis. In the city, unemployment is running in some wards at 11 and a half per cent, which is twice the national average.

“The rate of child poverty stands at approximately 43 per cent, which equates to over 100,000 children in this city growing up in relative poverty.

“Every person in every home is in some way or another affected by this crisis, the negative impacts of the rise in the cost of living are enhanced with the pandemic, and consequently require a level of response.

“That is why we are declaring a cost of living emergency, and we will organise for rapid deploy of resources to assist individuals across the city.”

John Cotton, cabinet member for social justice, said the city was in a “very tough situation”.

He said: “I think we all know we’re in for a tough few months, because we don’t have all the power in our hands to fix this crisis in its entirety.

“What we’re certainly not going to do is stand by. We will stand up and do a week out as a council with our partners to support communities and residents right across the city.”

Conservative councillor Ewan Mackey said it was “time to park party politics” and resolve the crisis as much as possible for the residents.

“That’s what we’re all here to do and to serve,” he added.

There are already over 300,000 people across Birmingham in relative poverty with many more highly exposed by this crisis Cllr Ian Ward