Birmingham City Council is on course to overspend by £49m this year, but has been praised for making progress since Whitehall’s intervention.
The latest report to communities secretary Sajid Javid by the Birmingham Independent Improvement Panel, the team sent in by the Department for Communities and Local Government to tackle local problems, was published on Wednesday (9 November).
An accompanying letter to Mr Javid stated that ‘flawed planning and insufficient delivery of the council’s 2016/17 revenue budget will result in serious overspend for the year’. The authority predicts the overspend will be £49m.
However, the report also set out ‘positive aspects’ of Birmingham’s recent progress in implementing a minimal five-year improvement plan, which drew on the recommendations of former top civil servant Lord Kerslake’s 2014 review of the council.
Birmingham was praised for adding vital news skills and experience through new recruits to its senior management team; improving the tracking and management of corporate performance; and handling ‘some unexpected external events and challenges'.
The council’s chief executive, Mark Rogers, said: 'The continuing and profound reductions to local government funding mean that the budget setting process has become increasingly challenging.
'The panel is correct in describing the setting of the 2017/18 budget as a "mammoth task" and it is one that we are not going to shy away from.
'We are equally determined to continue the wider work to improve ourselves and will not lose sight of our responsibilities to improve safeguarding and education services.
'These are the toughest of times ahead, but I have a strong team with me who as are committed as I am about delivering positive change for Birmingham.
'Challenge during these times is always welcome, and helps us to focus even harder on delivering the services and support, with partners, for Birmingham citizens.'
The story first appeared in our sister publication The MJ.
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