Expert have questioned whether Birmingham City Council can deliver the 拢76 million cuts proposed in the 2017/18 in a report ordered by government overseers.
The city council was ordered to have (LGA) after it built up a 拢49 million black hole in its finances when savings on health service and adult social care reform failed to be delivered.
But in its first report, the LGA panel, which includes Newcastle City Council leader Nick Forbes, has concluded that, while Birmingham鈥檚 proposed cuts are 鈥渁mbitious and challenging鈥 and contingency plans for alternative cuts need to be put in place should they fail to come through.
The city council is already under pressure to reconsider major cuts to support for the as well as reductions in , the under its 2017/18 budget proposals.
The review concludes: 鈥淥verall, the proposals would appear to be a reasonable and appropriate response to the financial challenge the council faces.
鈥淗owever, the review team did not feel sufficiently assured at this time that the magnitude of savings can be delivered in full.鈥
They add there are some encouraging signs, including assigning specific cuts to named council managers as well as cabinet members and the establishment of a board to hold those managers to account.
One bright note for city bosses is that, even after plundering council reserves to bail out the current budget to the tune of 拢35 million and using 拢46 million next year to assist the delivery of new cuts, the council would still be left with a healthy 拢87 million in reserve.
The report makes no judgement on the rights and wrongs of cuts demanded by the Government and the areas being cut by the council - just on whether the council is doing enough to ensure the budget proposals are achievable.
Labour council leader cllr John Clancy welcomed the review and said that, rather than wait until April 1, council staff were already focused on planning to deliver next year鈥檚 cuts.
He said: 鈥淭hey have recognised we have a robust and realistic set of proposals and that this is a reasonable response to the financial challenge we face.
鈥淭hey also highlighted that our workforce changes prioritise front line staff and services.鈥
While the panel had raised some concerns about the ability of the council to, say, reduce its wage bill by 拢40 million a year by 2019, Coun Clancy said that, by the time they came back at the end of January for a follow up review, he would be able to show them strong plans were in place
鈥淭his is a half-time report, we are looking forward to the further review,鈥 he added.
The review highlights five key risk areas:
1. The Future Operating Model
The reorganisation of the city council, which includes a large number of redundancies, are aimed at saving 拢10 million next year, rising to 拢40 million by 2019.
The changes are designed to remove red tape and make the organisation more responsive and efficient.
But the review labels the proposals 鈥渙ptimistic鈥 and suggests there could be issues with trade unions and staff resistance.
2. Adult social care
Suggests the management lack the capacity to deliver 拢20 million savings from a service and department already .
3. Supporting People (including homeless support)
Proposed cuts of 拢5 million this year, rising to 拢10 million in 2018/19, are politically sensitive, require close working with the under-pressure third sector and .
4. Children鈥檚 Services
Council has yet to demonstrate how planned changes to early years services, such as nurseries, will be achieved.
5. Service Birmingham Contract
Coun Clancy has in the 拢80 million-a-year IT services and support contract with Capita-Service Birmingham and says his team has negotiated a 拢10 million-a-year reduction, including 拢4 million achieved this year.
The review team wonders how much leeway there can be in a contract into which the council is tied until 2020.
