Birmingham faces £79m budget shortfall
Birmingham City Council, which effectively declared itself bankrupt, needs to save up to £79m in the next financial year. Initially, the council planned with a budget set in March, but an extra shortfall of £50m for 2025-26 has emerged.
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00:00Birmingham City Council, which effectively declared itself bankrupt, needs to save up
00:06to £79 million in the next financial year. Initially the council planned with a budget
00:12set in March, but an extra shortfall of £50 million for 2025-26 has emerged. This new
00:19budget, requiring an additional £74 million to £8 million in savings, will be presented
00:25in draft to Cabinet in October. Last year the council issued a section 114 notice, followed
00:31by £300 million in cuts and a 21% rise in council tax over two years. Despite these
00:38measures, concerns persist. The Birmingham Children's Trust projects £34.7 million
00:43in extra spending to support vulnerable children, with inflation adding a further £4.1 million
00:49to the budget gap. This underscores the severity of the financial challenges faced by the council's
00:55leadership and government commissioners.