The six ways Birmingham City Council's financial crisis has changed residents' lives forever

Birmingham City Council passed its unprecedented budget six months ago - what has changed since?

It’s been more than six months now since Birmingham City Council passed its unprecedented budget after becoming engulfed by a financial crisis. Since that critical meeting, residents have already seen the bleak consequences of the cuts and ‘savings’ become more real.

And there are still further impacts set to come, whether it’s the council’s controversial proposals for the library service, changes to bin collections or plans to introduce parking charges at some of Birmingham’s most popular parks. The local authority had found itself facing Birmingham-specific issues, such as an equal pay fiasco and the disastrous implementation of a new IT and finance system, as well as the rising demand for services and funding cuts.

Cllr John Cotton, leader of the Labour-run council, has previously acknowledged mistakes made in Birmingham but also pointed to “14 years of neglect from the previous Tory government, combined with major rises in demand and cost-led pressures”. “We're now working very closely with a new government that clearly understands and values the vital role councils play up and down the country,” he added.

“I am encouraged by Labour's plans for multi-year settlements.” The council has also since embarked on a recovery plan, which includes plans to become a “smaller and leaner” organisation that’s focused on getting the basics right.

READ MORE: Birmingham City Council's plans for 'minimum' number of libraries - and what would happen to the rest

Meanwhile Conservative politicians, including former Prime Minister Rishi Sunak, have blamed the mistakes made by the Labour-administration at the council. Now it’s half a year on from the budget meeting, here’s a look at just some of the ways that the city council’s financial woes have already affected Brummies according to recently-published reports.

1) Fly-tipping

A recent report by Cllr Majid Mahmood, the cabinet member for environment and transport, acknowledged that significant cuts in many of the ‘street scene’ services were having an impact. One example was that fly-tipping has “increased significantly” in a number of wards, with the highest instances “being predominantly the inner-city, high-density wards”.

“Changes to routes and schedules have been made to make regular visits to these areas to keep on top of the reported incidence,” the report continued.

2) Price hikes

Birmingham residents have been hit with numerous fee rises across many areas of everyday life in the past few months. They include an increase in garden waste subscription charges as well as an increase in bulky waste charges.

Meanwhile fee rises, and the introduction of ‘peak time prices’, have taken place at Birmingham Wildlife and Conservation Park (BWCP), a popular family attraction near Cannon Hill Park. According to a report published earlier this year, the council is looking to “enhance the commercial viability and financial sustainability” of the park.

It went on to say that ticket prices at the conservation park were “relatively low in comparison to other similar local attractions”.

“The proposed BWCP pricing strategy aims to balance affordability with financial sustainability,” the report continues. “This means that visitors have a choice as to when they visit and if they choose to visit at peak times, the cost will be greater".

3) Rat charge

The budget included proposals to introduce new charges at £20+VAT for 'rat in garden and rat in house treatments'. They have since been implemented but it remains free for Birmingham City Council tenants.

According to Cllr Mahmood’s report, the council received 12,710 requests for treatment of rats during 2023/24 - consistent with the preceding year of 12,384 requests.

4) Transport cuts

Earlier this year, the council revealed details of controversial cuts hitting some of the city’s most vulnerable residents. It said in May that changes meant that taxi and minibus services, commonly used to transport pupils to special needs schools, would now only be provided to those of sixth-form age in "exceptional circumstances”.

The council continued that support for these older teenagers would be provided through a personal transport budget or a pass for use on public transport. It added that the travel assistance policy had not changed for those of compulsory school age.

Responding to concerns, Birmingham City Council said earlier this year that it recognises that “difficult decisions need to be taken” in order to protect statutory services for vulnerable children and young people, as well as their families. “We appreciate that the revisions recently made to the travel assistance policy are a big change for those families impacted,” a council spokesperson continued.

“This is why we have given families as much notice as possible and have made support available from the team.”

5) Street lighting

A recently-published report, which provides an update on the delivery on the ‘savings’ within the budget, confirmed that reductions had been made when it came to street lighting. “Finance and managers continue to monitor the cost through the budget monitoring process,” it added.

"To date, there are not any reported movements in energy prices and therefore the saving is on track.”

6) Cultural events

The same report, set to be discussed at Friday’s finance scrutiny meeting, also provided an update on a proposal to cease funding for cultural projects. “This budget has been reduced and now stands at £35k to fund Heritage Week and Black History Month which must be delivered within budget,” it said. “No other spend can be undertaken.”

A previous council report that the £35k of funding would support "one more year" of the two annual events in 2024. A council spokesperson said in June: “Both Birmingham Heritage Week and Black History Month are delivered by a range of different partners across the city – who in recent years received grant funding to help with the co-ordination, promotion and official launch for their events.

“Some of these organisations have also received funding from other organisations or sources". They went on to say that this overarching support, via the council’s grant funding and in-kind support, has been vital in the events developing their place in Birmingham’s cultural calendar.

“It is inevitable this reduction will impact these events after 2024/25,” the spokesperson continued. “However, the council is committed to working with partners to secure external funding in order to continue its advocacy and support."

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