Birmingham's new finance boss has expressed horror at past mistakes after a report triggered fresh concerns over governance and risk management at the council. Green councillor Chris Garghan, who recently became cabinet member for finance, said lessons must be learned from the authority's troubled history.
Report Highlights Ongoing Weaknesses
A report by Andrew Hardingham, independent chair of the audit committee, acknowledged progress but concluded it could not provide 'reasonable assurance' that the council had fully adequate and effective governance, risk management, and internal control arrangements. The findings were supported by government-appointed commissioners overseeing the council's financial recovery.
Conservative councillor Alex Yip said the report 'paints a deeply concerning picture of the state of governance' at Birmingham City Council. 'This is after years of intervention, commissioners and reform programmes – it is an extraordinary conclusion,' he added.
Reform Leader Criticises Impact on Residents
Reform group leader Jex Parkin argued the report is not an abstract exercise. 'Residents are still carrying the cost of weak controls, delayed systems and poor information,' he said. 'The question is not whether improvement plans exist – it's whether the council can show that controls now work in practice.'
The council declared itself effectively bankrupt in September 2023, leading to drastic cuts and council tax hikes under the previous Labour administration. While the £300m black hole has been addressed, pressing financial issues remain.
Troubled Oracle IT System Under Fire
Another major challenge is the Oracle IT transformation project, blamed as a key factor in the council's bankruptcy. Councillor Sam Forsyth of the Birmingham Independents Group described it as 'dysfunctional and over-costly,' saying 'millions and millions of pounds were wasted on that IT system.'
Garghan acknowledged the system is still not fully operational, adding to the council's difficulties.
New Finance Boss Vows to Learn from Mistakes
Speaking at Tuesday's meeting, Garghan said he recognised the 'issues and concerns' raised. 'Demonstrably over the last few years the city's governance hasn't been adequate – to put it lightly,' he said. 'I've obviously only been in post for the best part of a month and already I've been surprised, and in some cases horrified, by what I've learnt about what's gone on in the past. We can't dismiss that – we need to learn from past mistakes.'
He called on all councillors to engage seriously with the audit committee, stressing that effective scrutiny and awkward questions are essential for proper council governance.
