Birmingham City Council 'effectively bankrupt'

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Submitted ⁨⁨1⁩ ⁨year⁩ ago⁩ by ⁨HeartyBeast@kbin.social⁩ to ⁨unitedkingdom@feddit.uk⁩

https://www.bbc.co.uk/news/uk-england-birmingham-66715441

The largest local authority in Europe issues a distress notice that means all new spending must cease.

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Chariotwheel@kbin.social ⁨1⁩ ⁨year⁩ ago

In their statement, council leader John Cotton and deputy leader Sharon Thompson said the authority was also facing financial pressures due to problems with the implementation of its Oracle IT system.

Intended to streamline council payments and HR systems, the flagship system was expected to cost £19m but after three years of delays it was revealed in May it could cost up to £100m.

Jesus, it's like building an airport in Berlin.

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- gnutrino@programming.dev ⁨1⁩ ⁨year⁩ ago
  
  Oracle IT system
  
  Well there’s your problem. Something, something, One Rich Arsehole Called Larry Ellison etc.
  
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- mannycalavera@feddit.uk ⁨1⁩ ⁨year⁩ ago
  Top tip, the HomeOffice use Oracle across their estate. Might explain how shit they are at everything 😂.
  
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- VieuxQueb@lemmy.ca ⁨1⁩ ⁨year⁩ ago
  Oracle still exists !?! Are they using 386’s ?
  
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  - HeartyBeast@kbin.social ⁨1⁩ ⁨year⁩ ago
    $13.8bn renevues last quarter - so, oh yes
    
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  - TerryCustard@feddit.uk ⁨1⁩ ⁨year⁩ ago
    They’ve even had to press the TURBO button
    
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  - FatLegTed@feddit.uk ⁨1⁩ ⁨year⁩ ago
    Oracle is a massive company, not just a programme.
    
    And no, they can afford Pentium Pro now.
    
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- HeartyBeast@kbin.social ⁨1⁩ ⁨year⁩ ago
  Both probably use Oracle.
  
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autotldr@lemmings.world [bot] ⁨1⁩ ⁨year⁩ ago
This is the best summary I could come up with:

The local authority - the largest in Europe - has issued a Section 114 notice preventing all but essential spending to protect core services.

Such a notice, issued in the past by councils including Croydon and Thurrock, means a local authority has judged itself to be in financial distress and can no longer balance its budget.

Opposition leader, Robert Alden, Conservative, said the council had “failed to show the proper speed and urgency needed to tackle equal pay”.

“Like local authorities across the country, it is clear that Birmingham City Council faces unprecedented financial challenges, from huge increases in adult social care demand and dramatic reductions in business rates income, to the impact of rampant inflation,” Mr Cotton and Ms Thompson said, adding local government faced “a perfect storm”.

The statement continued: "We implemented rigorous spending controls in July, and we have made a request to the Local Government Association for additional strategic support.

The leaders’ statement said: “The council’s senior officers and members are committed to dealing with the financial situation and when more information is available, it will be shared.”

The original article contains 766 words, the summary contains 182 words. Saved 76%. I’m a bot and I’m open source!

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