Brum proposes £300m cuts

By Mark Conrad and William Eichler | 20 February 2024

Cash-strapped Birmingham City Council will cut spending on services by £300m to balance its books.

The UK's biggest local authority will also hike council tax by 21% over the next two years from April, according to its budget proposals for 2024-25 and 2025-26.

Documents released by Birmingham alongside the budget proposals confirmed the Government has approved £1.25bn of exceptional financial support – in the form of loans that must be paid back partly through asset sales.

Council leader John Cotton apologised ‘unreservedly’ for the spending reductions and council tax increase.

He said: ‘We have no alternative than to face these challenges head on and we will do whatever is necessary to put the council back on a sound financial footing.’

The local authority has warned that up to 600 posts may be axed.

Birmingham was forced to issue a section 114 notice in September.

The council is facing liabilities for equal pay claims of nearly £800m.

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Finance Council Tax Austerity Budgets S114 Jobs Property Cuts