Council faces budget ‘black hole’

By on 10/07/2012 in Deputy Leader, News

A budget monitoring report to Cabinet on July 16 has revealed at least a £21million black hole.

The figure, which could rise even further, covers the first two months of the current financial year, which runs from April 2012 to March 2013.

As part of a commitment to transparency and openness, the report clearly details the challenges faced by the council.

Cllr Ian Ward, the new Deputy Leader of Birmingham City Council, said: “We feel it is important that the public know exactly where we are with the budget cuts that were implemented previously without solid plans for how they could be achieved.

“It is now up to the new council to plug holes it did not create. We will do our best but this is a massive challenge - further black holes could very easily appear as the year progresses.

“The remainder of the year will undoubtedly be difficult, but to protect the interests of the most vulnerable in the city, we will do all we can to ensure measures are put in place that cause the minimum impact possible to the services we deliver and the quality of life enjoyed in Birmingham.”

Ends

Notes to editors

2012/13 - Month 2 (end of May) revenue budget position:

City Council general fund: £979.738million
Gross pressures: £5.664million
Savings actions not in place – solutions to be identified: £15.664million
TOTAL: £21.328million

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