Birmingham Council's £144m Oracle system finally goes live after blunder
Birmingham Council's £144m Oracle system goes live

Birmingham City Council's replacement Oracle finance system, named Brindley, went live on Tuesday 18 August, four years after the disastrous initial implementation that left the authority unable to balance its books and triggered a Section 114 notice.

The council's managing director Joanne Roney and finance chief Carol Culley led celebrations marking the go-live, alongside staff, contractors and external commissioner Myron Hryck, who was brought in for his expertise in digital systems including Oracle. One officer involved in the project for years described the moment as a celebration, with cake and congratulations marking the occasion.

From £20m upgrade to £144m catastrophe

The original project was forecast to cost £19 million with a £1 million contingency. The switch from the legacy SAP system to cloud-based Oracle software was intended to modernise the council's finance, procurement, HR and payments systems. However, the first implementation, which went live in April 2022, was later described by former Lib Dem councillor Paul Tilsley as 'the biggest blunder in local government'.

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The escalating costs were a major factor in the council issuing a Section 114 notice, declaring it could not balance its books. For two years, the council was barely capable of monitoring and overseeing its multi-billion pound finances, leaving it exposed to fraud and unable to file unqualified accounts.

Careful approach backed by auditors and commissioners

External auditors Grant Thornton, council chiefs and government commissioners all supported a cautious approach to the second go-live, emphasising 'the right level of quality over speed'. Staff worked flat out for two years preparing for this moment, with repeated testing and monitoring to reduce the risk of a repeat of the previous failure.

Officers are said to have breathed a huge sigh of relief when the go-live passed without immediate hitches. Systems will now be closely observed.

Costs and losses continue to mount

By April 2028, including ongoing costs, the bill will have topped £144.4 million. Dr James Brackley from the Audit Reform Lab previously estimated the full cost plus lost savings will exceed £216 million. The council has also lost out on millions of pounds of savings the original project was meant to generate.

A team of 100 people, including experts from Oracle and other tech firms alongside council staff, have been working full-time on the project under project director Philip Macpherson. The council is also paying agency staff to backfill roles for those moved to the Oracle project.

Leadership departures and ongoing scrutiny

Multiple senior directors left the council in the aftermath of the failed first implementation, including chief executive Deborah Cadman, director of finance Becky Hellard, director of transformation Meena Kishinani, and director of digital services and IT Peter Bishop. There has been no public statement or finding on whether any of them were directly accountable for the failings.

In a statement, the council said: "The council's new Oracle system - Brindley - successfully went live on 18 August, marking a major milestone in the council's transformation programme and a significant step forward in how we manage our HR, finance and procurement functions."

The council added: "As with all implementations of this scale, it is too early to make a full assessment of the new system but based on the attention on quality through the programme we are cautiously optimistic about its implementation and the benefits it will bring. Our focus now is on supporting colleagues as they become familiar with Brindley and ensuring it becomes successfully embedded across the organisation."

The council will continue to closely monitor the implementation and provide enhanced support, guidance and training where needed, assisting colleagues to realise its long-term benefits.

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