Government commissioners will remain in direct control of Birmingham City Council for the foreseeable future, with a full exit not expected for at least three years. A new report from the lead commissioner has outlined a timeline that extends well beyond the May 2025 local elections, citing persistent challenges including a damaging bins strike and the long-standing equal pay crisis.
Exit Plan Targets 2028 as Key Hurdles Remain
In a progress report to Local Government Minister Alison McGovern, Lead Commissioner Tony McArdle stated his ambition to create an exit strategy. However, he warned that a full handback of powers to council officers and political leaders may not be achievable until October 2028. This means whichever party wins control in next May's local elections will have to continue working under the commissioners' oversight.
McArdle, who took over from Max Caller last autumn, found the council "is not yet fully functioning as a coherent corporate entity" and described its recovery as "fragile". He highlighted several substantial risks delaying a faster return to local control:
- The "destabilising" bins dispute with Unite the union, which has delayed service transformation and attracted intense national scrutiny.
- The persistent equal pay issue, a financial risk that has haunted the authority for over a decade.
- Slow progress on necessary governance and culture changes within the council.
- A financially fragile position with an "immense" challenge ahead.
Progress Praised Amidst Ongoing Crisis
Despite the significant challenges, McArdle's report also acknowledged important strides made by the council. He praised Managing Director Joanne Roney and her permanent Corporate Management Team. Key areas of progress include:
Genuine grip and steady progress in critical services like housing, children’s, and adult social care, with more council houses now meeting decent homes standards.
Reaching a framework agreement on equal pay to limit future costs and reset staff relations.
The development of a corporate plan to guide improvement and recovery, with the council showing more determined political direction.
McArdle also noted that the troubled implementation of the new Oracle finance system, whose cost ballooned from under £20m to nearly £200m, now "remains on track" despite significant risks.
Strike a 'Frustration' with No End in Sight
The ongoing industrial action by bin workers was singled out as a major obstacle. McArdle described negotiations with Unite as a "frustrating process" marked by public, contentious discourse. While weekly collections have been maintained with partner help, the strike has cost millions and harmed the council's reputation.
He revealed that most affected staff have accepted new roles or voluntary redundancy, with only three facing compulsory redundancy. A reintegration plan is being developed for when strikers return, aiming to rebuild trust and support long-term service transformation.
In her response, Minister Alison McGovern called the strike "deeply disappointing and frustrating for residents" and urged Unite to end the disruption. She added that if the council continues to progress, the government would hope to "review the shape and focus of the intervention" with phased reductions of control.
Council Leader John Cotton welcomed the report's recognition of progress but admitted there is "still much to do" before Birmingham becomes a well-run council delivering good services for its people.
