Savings Slipping, Jobs Stalling: Birmingham’s Finances and Jobs in the Red

Full Transcript:

The following is Alex’s speech to the Full Council meeting on 24 March 2026, covering two agenda items: the council’s Improvement and Recovery report, and the Scrutiny Inquiry into Reducing Unemployment and Raising Skills. “LM” denotes the Lord Mayor, the formal address used in council proceedings.


Lord Mayor, I rise to draw the Council’s attention to two items in the report.

Out of 76 corporate KPIs reported this quarter, 34 show a worsening direction of travel. That is up from 21 the previous quarter, up from 31 the quarter before. The report goes on to identify a significant decline in 18% of KPIs.

This clearly shows that the recovery plan is still in very tenuous waters, that we must guard against complacency. In any other situation, 45% of KPIs indicating a worsening direction is not cause for celebration.

The numbers RAG rated Red have gone from 8 in Q1, to 10 in Q2, to 14 in Q3.

Savings.

The Council has 167 savings projects that need to deliver over £187 million in savings. As of Q3, over £45 million — over a quarter — will not be delivered. It then goes on to say that this slippage will be mitigated through management actions and underspends within the directorate.

Two points arise from this. It is remarkable how they on this side of the chamber were calling into question when they passed their budget last month. Their budget was entirely predicated on their ability to deliver savings and to spend to their budget savings target — when historically they have never managed to deliver on any of their savings targets. Further proof of that writ large this afternoon.

The second is this: what management actions and further underspends within the directorates mean — is cuts to services.

There are some 31 red and amber savings with a total of £56 million where projects may not deliver their full target, Lord Mayor.

The recovery of this Council remains fragile, and however much the Labour Administration wish to place a positive spin on matters, it remains so.

Commissioners themselves say we must guard against over-optimism or complacency, as extending and embedding progress remains yet necessary.

The commissioners go on to say that they are keen to ensure that the new administration maintains a clear and determined focus on the delivery of this plan.

On this point, I am happy to give the commissioners that reassurance.


Lord Mayor, on the scrutiny inquiry into unemployment and skills — the facts are inescapable, and the timetable in this report is deeply troubling.

A data hub — not until December 2026.

A progress report — again December 2026.

Reshaping procurement to support the local economy — not until March 2028. Three years away.

How many more people will lose their jobs before then?

How many young people will leave school with nowhere to go before then?

How many families will struggle because even now this council is still choosing delay instead of delivery. This report is the epitome of this Labour Administration — no decisive leadership, but bureaucratic comfort creating the illusion of making a difference. Failing residents. Blaming other people.

The facts are inescapable. Under Labour, things have gotten worse for residents. Birmingham’s unemployment rate has gone from double the national average to almost triple. While other core cities in the same circumstances are improving, it is only in Birmingham under Labour that things are going from bad to worse.

Lord Mayor, the city needs a change in May — to the local Birmingham Conservatives who know what they are doing, have a plan, and are ready to take the city forward.


Disclaimer: This written text reflects the prepared remarks for this speech. The speech as delivered in person and/or in the accompanying video may vary in wording or emphasis.

Tags: Birmingham Birmingham Council Birmingham jobs
← Birmingham Budget Row: Labour’s Record… Ten Years in Public Service:… →

Discover more from Councillor Alex Yip

Subscribe now to keep reading and get access to the full archive.

Continue reading