Secrets, lies and a botched IT system: The uncertainty surrounding Birmingham City Council’s finances

The budget for Oracle was £19m but its true cost could be much, much higher

Morning Patchers — welcome to your Friday briefing.

Today’s story by Ed King delves into one of the biggest errors the local authority has made in recent years: the execution of the infamous Oracle IT system, that was meant to streamline payments and save money. It has, in fact, done the opposite. While a lot has been written about Oracle already, Ed looks at emerging claims that the tech fiasco has played a much bigger role in the city’s bankruptcy than previously thought. He hears from those who think the equal pay liabilities are a smokescreen and looks at reports by the council’s own finance officer and the external auditors that highlight the costly impact of the system. As one source says: “From my understanding, lies [were] told about the financial implications of Oracle.”

In your Brum in Brief, we’ve included news that the country’s third Mormon temple could be built in Sutton Coldfield, an interesting thread on Brummie Art Deco flats, more writing about the potential threat to the Electric cinema and other buildings on Station Street, and news that a group of Birmingham women will make the trip to deliver pads and liners to Gaza for International Women’s Day.

Look out for your weekend read which will wing its way into inboxes tomorrow – it’s an insightful interview with a controversial internet figure. The article is free but to let us know your thoughts in the comments, and have access to all of our writing, you’ll need to be a paying Dispatch member. We are three members away from hitting our target of 500! So if you’ve been thinking about signing up, now is the time to do so. You’ll make our week.

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Brum in Brief

⛪The first Mormon temple to be built in the UK in 30 years could be erected in Sutton Coldfield. The Church of Latter Day Saints has applied for planning permission to construct the building with a 314ft spire on the grounds of an existing Mormon church. Elder Martin Turvey told the Guardian that membership is modestly growing and their “ultimate goal is to have a temple within an hour or two’s drive” of anywhere in the UK. If approved, the temple will be the third of its kind in the country.

🏢We enjoyed this thread that showcases Birmingham’s Art Deco architectural delights by self-described “history buff” John Neale on X/Twitter. Neale gives a photographic tour of inter-war blocks of flats from the city centre to Edgbaston and beyond, and intersperses interesting facts along the way. According to him, “no other big city outside of London” has as many of the buildings as we do. He also linked to this article (which covers other cities in England too).

📽️Continuing the architecture — and Art Deco — theme, Joe Holyoak has written about the potential demise of the Electric cinema and other significant structures on Station Street. In his column for Building Design he points out that while the city’s arts venues are facing cuts, our “planning culture is liberal” and in favour of tall buildings. Holyoak argues Station Street must be reserved (something Mayor Andy Street is in favour of, as we reported on Monday).

⛑️A group of women from Birmingham will travel to Egypt today to prepare a truckload of period products to be delivered to Gaza. The aid mission has been organised in response to the needs of Palestinian women, displaced by the Israel-Gaza war. A lack of supplies means many have resorted to using tent scraps instead of pads and liners. West Midlands humanitarian charity ISRA-UK has organised the delivery for International Women’s Day. “The situation there is dire and desperate and the women need us,” said Saraya Hussain, who will be leading the deployment team. You can help by donating here.

🦖In an unusual collaboration, a quartet will perform a musical tribute to ABBA alongside Allosauraus Roary at the Lapworth Museum of Geology. ABBA Unearthed: A Quartet Tribute Amongst Dinosaurs takes place next Tuesday evening. You can book here.

Roary at the Lapworth Museum. Photo by: University of Birmingham.

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Secrets, lies and a botched IT system: The uncertainty surrounding Birmingham City Council’s finances

By Ed King

Is the root cause of Birmingham’s financial crisis down to the failed implementation of a new IT system? That’s what a number of city stakeholders believe. They have told The Dispatch that the purported Equal Pay Liabilities (EPL) of £650-760m is just a “smokescreen” for the real reason that Birmingham is broke. Instead, they are pointing to Birmingham City Council’s disastrous transition to a new HR and IT system called Oracle ERP (Enterprise Resource Planning). Originally approved for use in July 2019 with an implementation bill of £19m, and launched live in April 2022 at nearly double the price, the final cost of Oracle ERP could in fact be closer to £300 million.

At Tuesday’s Full Council meeting to approve cost-slashing measures, Head of the Audit Committee, Labour Councillor Fred Grindrod told the chamber that he was reluctantly voting for an “economically illiterate” budget. He called Oracle “the single most contributing factor to the mess we’re in”. In their latest report on the failed system, auditors Grant Thornton confirmed it has left the council without “effective financial control”. Just as Birmingham residents are organising protests  and petitions against a 21% rise in Council Tax, many people inside the council now feel pushed to the brink. Blame games and suggestions of cover ups are being mooted up and down the corridors of power.

With Birmingham City Council cowering in the shadow of a budget that will see the sale of £500m in public assets by the end of year one, and £300m of cuts to services over two years, could the truth about Oracle finally be coming to light? 

Illustration by Jake Greenhalgh.