Birmingham City Council withdraws voluntary redundancy scheme due to cost

A voluntary redundancy scheme offered to all Birmingham City Council has been scrapped due to costs.

More than 10,000 employees were told they could apply for a Mutually Agreed Resignation Scheme (MARS) to save the cash-strapped council money on August 25. However, shocked employees have now been told the authority cannot afford the scheme - despite many agonising over the decision to leave.

The council’s chief executive Deborah Cadman emailed them on Thursday morning (November 16) informing them no-one can take the offer due to the cost of implementing the scheme.

A Birmingham City Council spokesperson told the Express and Star: “We can confirm a decision has been made to stop the MARS process meaning no MARS applications will be approved. This was a collective decision made by the Corporate Leadership Team and the Commissioners.

“As part of our financial recovery, the council is focused on making savings and any decisions made need to consider our current financial position. The cost of MARS was far greater than we anticipated.”

“The council is currently in a very different situation from when we first announced MARS, and we must take a more considered and stringent approach to our budget challenges and any changes to staffing.”