00:00Birmingham City Council has not approved financial proposals designed to produce what would have
00:05been its first balanced budget since 2023. The plans were debated at a full council budget
00:11setting meeting but did not secure enough support to pass. Labor remains the largest group on the
00:17101 member authority, although its majority has been reduced following defections and resignations
00:23and some councillors were not present for the vote. The councils were required by law to set
00:28a budget before 11 March and a further meeting is expected before that deadline. Earlier this month,
00:34the authority said it was no longer effectively bankrupt. Budget papers published ahead of a
00:40recent cabinet meeting describe the financial position for 2026-2027 as balanced with around
00:47£130 million earmarked for investment in services. Since autumn 2023, when a significant financial
00:55shortfall emerged linked in part to equal pay liabilities and spending on a new information
01:00technology system, residents have experienced service reductions. Conservative opposition leader
01:06Robert Alden described the situation as an utter shambles and said the city deserved better.
01:11Council leader John Cotton had previously said decisive action had put Birmingham back on track.
01:18Government commissioners remain in place to oversee recovery and financial governance agreements.
01:23The authority says it continues working with commissioners to ensure spending plans are
01:27sustainable and compliant with statutory duties.
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