Balanced budget marks city as 'no longer bankrupt'

A £4.4bn budget for Birmingham said to balance the council's books for the first time in three years, has been passed.

Council leader John Cotton asked for an adjournment at the original budget meeting last week after realising the party did not have the support to get the vote through.

Cotton described it as a budget that marked the city "no longer bankrupt" and placed the council "back in the mainstream of local government". Council tax will rise by 4.99%

At a continuation meeting the budget vote was passed by 40 votes to 37. Several amendments were agreed, including an extra £25m for highways improvements and money for youth services.

Despite the greenlight, there was widespread criticism of the council's leadership.

Residents will see a council tax rise of 4.99%, considered a standard rise after a much steeper bump of 17.5% over the previous two budgets.

A projected £760m equal pay liability bill and a botched IT system rollout that has cost the council more than £100m led to a section 114 notice, or effective projected bankruptcy, being declared in 2023.

Government commissioners brought in to oversee the local authority are still in place.

The 101-member council will hold an all-out election in May.

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