Audit Reform Lab report on BCC's financial position

Submitted by kathy on

Save Birmingham campaign calls for a pause to drastic council cuts so communities have the time they need to take on community assets.

A recent report from the Audit Reform Lab has questioned the calculations made by Birmingham City Council that led to the declaration of a Section 114 notice exactly one year ago. 

In its report, the Audit Reform Lab recognises that future funds will be required for equal pay liability claims, but argues that the original figure used is speculative. The report claims that the primary driver of BCC’s financial problems is the cost of the disastrous implementation of a new ‘Oracle Cloud Fusion’ IT system, and therefore that the current capitalisation direction should be redrawn and extended to April 2028, capitalising against the costs of the Oracle IT system.

The Save Birmingham campaign is therefore asking the council to reduce the urgency of the cuts and the pace of change, and to re-evaluate the proposed budget reductions. This will give communities the time they need to take on community assets.

Changes will still need to take place across the city, as the need for some financial savings will remain and the council needs to do things differently. But pausing and re-evaluating the necessary cuts will give BCC the time it takes to give communities a greater role and will enable them to “work in partnership with local companies, community groups and individual residents”; a desire outlined in its ‘Shaping Birmingham’s Future Together’ initiative. 

Since the launch of the Save Birmingham campaign, numerous community places have been successfully registered as “assets of community value” (ACV), offering them official protection from sales for a six month period and thus giving local groups time to explore community ownership and alternative models. 

But giving every community the chance to take on assets takes time. The campaign has partnered with experts in this field, including Locality, Co-operatives UK and the Community Land Trust Network. By taking the time to review its budget, Birmingham City Council has the opportunity to ensure meaningful public engagement and partnership working, and most importantly to provide more time for communities in Birmingham to seek support they need to take on community assets.

Read the full Audit Reform Lab report here.