Council’s budget for 2026/27 approved
Budget proposals – including extra £130 million for frontline services like cleaner streets, tackling fly-tipping and protecting our libraries – have been approved by full council.
Leader Cllr John Cotton, who declared Birmingham City Council is no longer 'bankrupt', set out the budget for 2026/27 during full council on 24 February, which was reconvened yesterday (2 March) after it was adjourned for a final vote.
Councillors voted 40 to 37 in favour of the budget proposals, with two amendments to the budget being approved.
The council now has a balanced revenue budget, which for 2026/27 includes an extra £130m investment in council services, focussing on cleaner, safer streets and better local services.
This additional funding will enable the council to:
- Invest an extra £40 million in cleaner streets
- Increase funding to step up our fly-tipping enforcement
- Protect our libraries and keep them open for longer, with Community Hubs open for an extra day, every week
- Create a £1 million culture fund, to support to develop our City of Music bid, and celebrate community events from St Patrick’s Day to Ramadan Streets Festival
- Spend a further £1 million for Youth Services to tackle knife crime, and
- Help further action on tackling exempt accommodation.
Cllr Cotton said: "We have reached an important milestone in the council’s recovery and that is down to the sheer hard work that has been undertaken here in Birmingham by members and officers, supported by commissioners.
“Now - thanks to two years of decisive action, tough choices, and a great deal of hard work by members, officers, and Commissioners - the Section 114 is gone, and we have ditched, once and for all, the tag of ‘Bankrupt Birmingham’.
"We have closed a £300 million budget gap, tackled our equal pay liabilities, and are getting to grips with improving the services that the council provides for the residents of Birmingham.
“I am determined that the mistakes of the past will not be repeated, as we drive further efficiencies to deliver better services and value for money for council taxpayers – there will be no backtracking on the progress that we have made over the last two years.
"I’m ambitious for Birmingham’s future. Now we will step up our work with West Midlands Mayor and Government to invest in our communities, delivering the homes, jobs and services that the people of this city deserve."
