![\"Birmingham](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/12\/0_IMG_0628_censored.jpg\")
Birmingham City Council’s Council House in Victoria Square<\/p>\nBirmingham City Council and other councils in the most deprived areas receive funding boost from the governmentBirmingham City Council’s Council House in Victoria Square<\/p>\n
Birmingham <\/a>has emerged as a major winner after the Government announced it was to give more spending money to councils in the most deprived parts of the country.<\/p>\n The city council<\/a> is to get millions of extra funding to help it deliver essential services as part of the multi year settlement announced in the House of Commons today, Wednesday December 17.<\/p>\n The move was hailed as a massive fillip to the beleaguered council, still in recovery after declaring its de facto bankruptcy two years ago.<\/p>\n READ MORE: Anger over ‘intimidating’ threat to hold bin strike protests outside councillors’ homes<\/a><\/strong><\/p>\n The announcement was part of a deal announced to pump a total of \u00a378 billion funding into local authorities across England over three years, heavily weighted to support areas of the greatest deprivation over more affluent parts of England.<\/p>\n Council leader<\/a> Cllr John Cotton hailed the settlement. It will mean by 2029 the council will have seen its funding increase by 45% in five years, the equivalent of \u00a3651.5 million.<\/p>\n He said: “This is the end of councils living hand-to-mouth.<\/p>\n “After 14 long years of Conservatives cutting our funding, we\u2019ve now got a Labour government that is investing hundreds of millions of pounds in Birmingham<\/a>, not just this year but for the years ahead, meaning that we can properly fund the services that make a difference in our communities.<\/p>\n “Whether that\u2019s keeping the streets clean, or investing in our libraries, this settlement means that we can deliver on what\u2019s most important for the people of Birmingham.\u201d<\/p>\n It is the first multi year settlement announced in a decade.<\/p>\n Under the reformed funding formula, almost half of councils (43%) will see their funding fall in real terms over the next three years. This includes the majority of shire districts (70%) and inner London boroughs (67%).<\/p>\n Far fewer major city councils, outer London boroughs and shire counties lose out while Birmingham is one of the big overall winners.<\/p>\n In the coming year it will receive \u00a31.103 billion as its fair funding settlement for 2026-27, including \u00a31.019 bn in baseline funding, \u00a3427.1m in tariff\/top up funding, and better care funding of \u00a383.8m. The settlement assumes the council will additionally impose the top permitted council tax raise of 4.99%.<\/p>\n Those two elements together make up a big chunk of the spending power available to the council.<\/p>\n Birmingham city council had to declare its financial distress in 2023 because of multiple issues including rising demand for services, a failed and costly IT Oracle project, loss making investment schemes and the spectre of equal pay.<\/p>\n Its officers are currently putting together a budget plan for the year ahead, with the draft plan set to be unveiled next month. Today’s announcement provides much needed breathing space as the council seeks to deliver a legal, balanced budget.<\/p>\n Birmingham Edgbaston<\/a> MP Preet Kaur Gill welcomed the funding announcement, saying it was vital for Birmingham after 14 years of austerity cuts.<\/p>\n While Home Secretary Shabana Mahmood, MP for Birmingham Ladywood, said that austerity had ‘decimated public services in our city.’<\/p>\n “Today is a good day for Birmingham, and I will never stop fighting for our city and my home.”<\/p>\n