City council facing ‘huge challenge’ implementing financial plans

THE independent panel appointed to oversee the reform of Birmingham City Council has said the local authority continues to face a huge challenge implementing its long term financial strategy.

The Birmingham Independent Improvement Panel said the council had made progress since its change of leadership in November but needed to meet its challenges effectively during the next two months.

The council is facing cumulative budget reductions of around £250m per annum over the next four financial years.

In a letter to Local Government Secretary Greg Clark, BIIP chairman John Crabtree said the commitment by new council leader John Clancy to raise the pace of change was important, as was the promise of better collaboration with the council’s external partners and to ensure the local authority operated in a much more open and transparent way.

However, Crabtree said the panel felt there was still a lot more work to do.
In his letter to Mr Clark, he writes: “The December progress report shows the council’s own assessment of its progress over the last twelve months. It also acknowledges that there is a great deal more to be done to meet the scale of the challenge it faces.

“Following the change of council leadership the panel now expects to see a significant step up in the rate of progress.

“In particular in the next two months the council will need to be able to demonstrate that the long term financial strategy is both realistic and deliverable.”

The letter commends the decision by Cllr Clancy to retain the existing Cabinet members in post as stability would be important for the council as it looked to meet its targets.

Responding to the letter, Cllr Clancy said: “It is encouraging the panel is supportive of the inclusive, transparent and collaborative approach that I have outlined and begun to implement since becoming leader of the council.

“It is crucial that we establish clear boundaries between elected members, who should spend much more time looking outward and setting the strategic direction for the council.

“There is still more to be done to deliver on the recommendations that the panel are monitoring but we are all fully committed to the improvement plan including providing effective leadership with partners.”

Following Mr Clark’s decision in September, the panel’s remit was extended until the end of March 2016 and its next report to him will be made at the end of the current quarter.