How Birmingham City Council plans to tackle £760m equal pay bill

Cash-strapped Birmingham City Council has outlined its grand plan to tackle its near £1 billion crisis surrounding equal pay claims and its doomed IT system, Oracle.

The city’s council leader John Cotton spoke of his surprise last week of the £760m equal pay bill, a sum equivalent to the council’s annual budget. The council also needs to stump up the £100m to fix its flawed IT system which was intended to help streamline payments across its public services.

Now, following a motion passed at full council on Tuesday, July 11, the council agreed to a judge-led inquiry to determine the causes of the equal pay liability growth since 2012. It was also agreed an independently-chaired management review would take place to understand the root causes of the failure to implement Oracle. Ways in which to combat the council’s financial crisis will also be debated for at least an hour at full council meetings at least every 12 weeks.

Leader of Birmingham’s Labour-run council, a bullish Cllr Cotton said: “I’ve been absolutely clear from the first day that I took up the role as leader that I would be open and transparent about the challenges facing this city council. That’s why I’ve taken steps to ensure members were made aware as soon as the information was made clear around the specific scale of the liability.

“There can be no doubt that the challenge of equal pay is the largest challenge this council has faced and it will require some concerted efforts to resolve it. That’s why we’ll be voting for this motion.

“It’s important to give some context here; since being advised of the specific scale of liability that the council faces on equal pay, the deputy leader and I have taken specific action. We’ve commissioned an independent government review in collaboration with the department of levelling up and housing and communities which will look specifically at equal pay and financial governance. We’ll be commissioning an independently-chaired management review to understand the root causes of the failure to implement Oracle, and we’ve set out plans to institute a judge-led inquiry to determine the causes of the equal pay liability growth since 2012.

“I think it’s vital there’s an independent process that provides clear answers to these questions. We’ve now also set in place mandatory spending restrictions and we will be appointing three strategic external advisors to support the council’s directors and cabinet. A new strategic delivery board will be created to develop plans for improvement as well as strategic external advisors who’ll produce an independent report on a quarterly basis with an update on progress and analysis whether there is indeed adequate grip and pace in relation to the delivery of change that is now required.

“We believe it’s absolutely right that members are offered the opportunities to ask questions and to debate this issue and, by basing this around the independent reports we’ll receive each quarter, we will enhance the quality of the depth of those debates greatly.

“I think it’s only right that the council does not mark its own homework on this issue and, by having this expert advice each quarter, we can track the council’s progress and ensure that there is that accountability.

“I’ve made it clear that I will be open and transparent with all members about the challenges that we face – and the actions we are taking to overcome them.”

However, in response, leader of the opposition  Conservative group, councillor Robert Alden, stated how the very motion that was passed will ensure the council “can no longer run from being held accountable.

He said: “The idea that Labour was unaware of the mounting equal pay bill they were racking up by ignoring the issue, choosing to focus on promoting their political brand rather than safeguarding the services Brummies rely on, is ridiculous. We warned them this was a risk, their own cabinet members retweeted statements by the unions saying this was a significant risk. Our motion has ensured that they can no longer hide from scrutiny, no longer run from being held accountable. We have said on housing, we have said on Oracle, if they refuse to tell the public the truth then we will make them, and if they won’t address this issue head-on, we will make them.”

Deputy leader of Birmingham’s Conservatives, Coun Ewan Mackey added: “The simple truth is that Labour has been dangerously negligent in choosing to ignore this issue for 11 years.

“They promised a golden decade but are delivering a decade of pain as the decisions made by this Labour administration will affect the services residents rely on for years to come.

“Our motion has ensured that future decisions on the council’s equal pay liability will be made public, and not hidden by a Labour party that cares more about its brand than the people of this city.

“This motion has ensured that there will be openness and transparency going forward, and that rather than half-truths and promises of answers later, we will get full answers in council for the first time from this Labour administration.”