Birmingham City Council auditors threaten to quit over ‘unacceptable working environment’
Auditors at stricken Birmingham City Council have said “additional safeguards” had to be introduced to protect its staff from an “unacceptable working environment” or else they would have quit.
Grant Thornton is also assessing if “intimidation” tactics are being used by an external organisation, which has twice raised the possibility that it would be complaining about the team’s work.
The firm is now considering whether it is able to continue as the council’s auditors following this issue.
In a progress report to Birmingham City Council’s Audit Committee, which will meet today (January 31), Grant Thornton said it was, “concerned regarding some of the discussions between ourselves and Council officers and members”.
In certain instances, this created “an unacceptable working environment. We note that this does not extend to the finance team where a professional relationship remains”.
Concerns were raised with Chief Executive Deborah Cadman on December 21, 2023, as well as observations for the working environment for the S151 officer and finance team.
Following these discussions, “additional safeguards” were deployed to ensure an “appropriate working environment is maintained” and on this basis would Grant Thornton remain as the council’s auditor.
The report follows an announcement on January 16, that the council is preparing to cut as many as 600 jobs as it looks to tackle a £300m budget deficit.
The move adds to a raft of measures set to be taken including:
- a 10% rise in council tax each year for the next two financial years
- a programme to regear the council’s £2.4bn investment property portfolio to propose the sales of property and assets
- cuts of £57m to children and family services
- £29m slashed from city operations including highways and infrastructure management
- 30% of the budget for city housing and homelessness is expected to be saved
- almost £22m will be cut from adult and social care
Continued analysis now indicates that the budget gap may rise to tens of millions over the original £300m, thanks to growth pressures across adult and children social care, increased demand for temporary accommodation, Oracle programme costs and forecast equal pay costs, additional staffing costs across social care and to support the Oracle finance system; and expected lost income (mainly from parking and potential asset sales).
