Jump to content
House Price Crash Forum
Sign in to follow this  
Sancho Panza

More Than 1,000 Birmingham City Council Staff Will Be Axed In New Cutbacks

Recommended Posts

Birmingham Post 17/2/14

'The city’s controversial Capita contract will be slashed by at least £20 million – and Marketing Birmingham faces major cuts as the council chops £87 million off its budget.More than 1,000 Birmingham City Council staff will be axed in new cutbacks, it has been confirmed, with its £120 million-a-year Service Birmingham spend being curtailed.

The job losses mean that in the last four years an astonishing 7,000 workers have left the country’s biggest local authority amid swingeing budget reductions.

Council tax bills will rise by 1.99 per cent – the maximum before a city-wide referendum is triggered, meaning everyone’s bill will rise by around £23.

The flagship new £189 million Library of Birmingham had been originally ordered to make £1.65 million of cuts to running costs – and threatened with opening hour reductions if this wasn’t achieved.

Officials scaled this back – but the fund to buy books and hold events at the library will face cuts, and it was admitted that it was “substantially” more expensive to run than the old Central Library.

There will also be a move over the next two years to reduce the funding to support major events and promotional work through Marketing Birmingham, while encouraging the organisation to seek alternative funding. And £5.8 million will be saved by caring for the elderly in their homes, rather than offering residential care.

But the under-threat park keepers and rangers were saved after officials managed to find £2 million in the budget to cover the costs.

City leader Sir Albert Bore said Birmingham was being unfairly treated by the government – and is facing an even bigger problem next year.

He said: “The indicative figures for the next year (2015-16) are even more unfair. Birmingham is due to receive a cut of £147.42 per dwelling, whilst the national average will be just £45.32.”

Sir Albert said that with £375 million cuts already made since austerity began in 2010, total budget reductions could reach £822 million by 2018.

He said: “The average cut in spending power as defined by the Government for 2014/15 across England will be £71.44 per dwelling. In Birmingham it will be £145.33.

“The city council has been making radical changes to the way we work and achieving significant efficiency savings for several years, under both this political administration and the last.

“We have reduced our staff by 33 per cent since 2010 and a further 1,000 jobs will go in the year ahead.

Only the crisis-hit children’s social care department is being spared from cuts and will in fact see a £9.2 million budget increase.

There was confirmation that four community libraries are likely to close with cuts totalling £300,000 to the book fund, events and exhibitions and the mobile library service.

Coun Ward said that the Library of Birmingham Development Trust has agreed to find £500,000 in savings and the council will plug the rest meaning the opening hours will be maintained for the next year while a longer term business plan is developed.

He said: “The library specifications and running costs were set out in 2007, during very different times. But in common with other council services there will need to be cuts.”

He said that as a consequence the running costs are at a ‘different level’ to those of the old Central Library. “The costs are substantially greater.”

The free bulky waste collection has been withdrawn to save £1 million.

The Amey highways repair and maintenance deal, another major contract which like Service Birmingham was signed before the austerity era, will also be cut by £1 million a year. There are also major changes to social care and education with efficiencies, some cuts and some funding, such as children’s centres early year provision being transferred to the NHS, schools or other groups.

Mr Alden added: “The council spends £1 billion a year on procurement of goods and services and it is here that savings could be made. They are talking about £200,000 savings when any private sector organisation would be looking at £5 million.”

He added that further cuts could be made to the wheelie bin promotional budget: “With those amounts they could easily cover the £700,000 savings on library closures, or the 80 per cent cuts in school crossing patrols.”

Gillian Whittaker of the GMB union said: “This is a further blow to Birmingham City Council workers. The services across Birmingham are already stretched and our members are already over-worked.”'

On the other hand

Birmingham Post 17/2/14

'One of Birmingham City Council’s largest contractors Capita has announced that it delivered on its pledge to create at least 720 jobs by 2013.

The commitment was made when it signed the Service Birmingham contract 2006 and eventually took over the council’s IT, call centre and revenue collection services.

The contract has been heavily criticised by some councillors for being too costly at a time of austerity cuts.

As a result, the council has negotiated a cut of at least £20 million a year from the core IT contract, which is believed to cost between £50 million and £60 million a year.

But now Capita has announced that it employs 737 people in addition to the Service Birmingham contract, as well as developing 22 IT apprentices from some of Birmingham’s poorest backgrounds since 2008.'

Share this post


Link to post
Share on other sites

Wonder if the huge equal pay settlements they've had to make recently had anything to do with this.

They built a £160 million library in the middle of the internet age.I don't think equal pay is the main problem here.

Share this post


Link to post
Share on other sites

They built a £160 million library in the middle of the internet age.I don't think equal pay is the main problem here.

And they invented Winterval.

Edited by SNACR

Share this post


Link to post
Share on other sites
As a result, the council has negotiated a cut of at least £20 million a year from the core IT contract, which is believed to cost between £50 million and £60 million a year.

What on earth are they spending that kind of money on? It's not like they need state of the art computing systems to run council services.

The council spends £1 billion a year on procurement of goods and services...

One thousand million british pounds. :blink:

Share this post


Link to post
Share on other sites

They built a £160 million library in the middle of the internet age.I don't think equal pay is the main problem here.

Are you sure? The equal pay settlement has cost them at least ONE BILLION POUNDS (£1000m)...

Council facing £1bn equal pay bill

http://news.uk.msn.com/council-facing-%C2%A31bn-equal-pay-bill-1

Birmingham landmarks including the NEC could be sold off

"Landmarks such as the NEC could be sold to pay legal claims over equal pay totalling more than £1bn, Birmingham City Council has said."

http://www.bbc.co.uk/news/uk-england-birmingham-25733267

Equal pay claim costs Birmingham City Council £3bn

http://www.payrollworld.com/article/887/employment-law/equal-pay-claim-costs-birmingham-city-council-3bn

How many £160m libraries can you build with £1000m?

So I think the equal pay settlement IS a major factor.

Share this post


Link to post
Share on other sites

Are you sure? The equal pay settlement has cost them at least ONE BILLION POUNDS (£1000m)...

Council facing £1bn equal pay bill

http://news.uk.msn.c...qual-pay-bill-1

Birmingham landmarks including the NEC could be sold off

"Landmarks such as the NEC could be sold to pay legal claims over equal pay totalling more than £1bn, Birmingham City Council has said."

http://www.bbc.co.uk...ingham-25733267

Equal pay claim costs Birmingham City Council £3bn

http://www.payrollwo...ity-council-3bn

How many £160m libraries can you build with £1000m?

So I think the equal pay settlement IS a major factor.

I defer to your post.I was making a cheap joke at the expense of their library without being aware of the scale of the equal pay award.That's huge.

Apologies for my ignorance.

Edited by Sancho Panza

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   215 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.