The Birmingham City Council services set to be hit hardest as £150m of cuts planned

Birmingham City Council has outlined which of its services are set to face the biggest cuts after it declared itself 'effectively bankrupt' earlier this year.

In September the council issued two Section 114 notices, formal admissions it was effectively bankrupt. The reasons included equal pay claims of up to £760m and an £80m overspend on a troubled IT system.

A document published on the council's website show that Birmingham's children’s services are set to face the biggest hit financially, with services being cut by around £57 million. This includes services for schools and social care. City housing is set to be hit with cuts of £5.8 million, with city operations that include highways, bins and parks set to be affected with cuts of £29m planned.

Council management services face the biggest percentage cuts. The sector is due to receive a 50% budget decrease of around £15.6m. The Strategy, Equalities and Partnerships services are to be cut by £2,597 million. And there are also plans to cut the council's Adult Social Care services by £21.9m.

The council's Places, Prosperity and Sustainability services are also facing cuts of £9m.

Documents published ahead of a council cabinet meeting on Tuesday show the council is facing a £87.4 million overspend for 2023/24 and a budget gap of around £300 million by 2025/26. It was confirmed on Tuesday (December 12) that the council would write to the government to ask for permission to raise council tax by more than the 4.99% limit without holding a referendum.

In the document, the council said the plans could change, as the list "does not constitute the full and final list of savings expected to come forward for delivery in 2024-25.”