Multi-million pound taxpayer cost of Birmingham bin strike revealed in report
The industrial action, which has been causing disruption since January this year, has left residents having to endure missed collections and heaps of rubbish in the street.
But it's also inflicted financial pain on the local authority, which effectively declared itself bankrupt in September 2023.
In a recent finance report, Birmingham City Council said it incurred a 'significant level' of one-off response and clear-up costs during April and May because of the strike.
They included street cleansing, extended opening hours of Mobile Household Waste and Recycling Centres, security costs and additional support to tackle the accumulation of waste.
The report also stated that, as the strike continues, additional costs were building up for:
A proportion of the costs were mitigated by the reduction in staff costs, with striking bin workers instead being financially supported by the Unite union.
However, up to the end of May, the factors were still estimated to have cost the council around £3.9 million according to the report.
'It is not possible to determine how long the strike action will continue, thus a forecast for the future cost impact of the strike has not been incorporated,' it said.
It added that the city council would not be providing a green waste service in 2025/26, which had been budgeted to achieve £4.4 million.
'Income from bulky waste and commercial waste are also anticipated to underachieve,' it said.
'However, the income received from the energy contract relating to the incineration of waste will over-perform and offset this as was seen in 2024/25.'
The report also focused on the transformation of the council's waste services, which was pushed back because of the industrial action earlier this year.
The project has been described as a key part of the crisis-hit council's recovery plan and will see collections move from weekly to fortnightly.
Weekly food waste collections and a second recycling bin specifically for recycling paper and cardboard were also set to be introduced in phases across the city from April onwards.
But the report said: 'The council has had to delay the delivery of several savings and the implementation of transformation plans. It is anticipated that as street scene transformation is rolled out, a proportion of these savings will be achieved but this will be subject to the timing and speed of rollout.
'Some, but not all, of the projected savings shortfall is therefore associated with the impact of the industrial action.'
The council said a number of projects across its 'city operations' directorate faced the risk of slippage.
In total, the cost of the 'non-delivery' of savings after mitigation, amid transformation plans being delayed, was forecast at £10.1 million, according to the council.
Tensions over the strike have dragged on into the summer, with Unite voting to suspend the membership of Labour councillors at the city council, including leader Coun John Cotton and also deputy prime minister Angela Rayner.
The council said it was ending negotiations with Unite to resolve the dispute, which was initially triggered by the loss of the Waste Recycling and Collection Officer (WRCO) role.
Striking workers have raised concerns about pay while the Labour-run council's leadership has repeatedly insisted a 'fair and reasonable' offer had been made.
Birmingham City Council said last week it would notify staff and unions of its intention to enter consultation with affected workers – while keeping the door open to those wanting to accept offers to retrain or be redeployed.
Council leader John Cotton said at the time: 'We have negotiated in good faith but, unfortunately, Unite has rejected all offers so we must now press ahead to both address our equal pay risk and make much needed improvements to the waste service.
'This is a service that has not been good enough for a long time and we must improve it.
'Unite's demands would leave us with another equal pay bill of hundreds of millions of pounds, which is totally unacceptable, and would jeopardise the considerable progress we have made in our financial recovery.'
Councillor Majid Mahmood, Cabinet Member for Environment, said last week that the council remained committed to creating a 'modern, sustainable and consistently reliable waste collection service for all residents'.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
21 minutes ago
- Daily Mail
The car makers already discounting EVs over concerns they'll be excluded from Government grants - how to get up to £3,750 off
It's barely been a week since the government announced its new Electric Car Grant but already confusion is rife and skepticism at an all time high amongst both car makers and buyers. With it still unclear which brands and models will pass stringent sustainability criteria built into the official grant scheme, it's been reported that Chinese brands are likely to be excluded on manufacturing-related emissions grounds. Preempting their exclusion, some East Asian makers have decided to take matters into their own hands and offer grant-style savings of their own - some matching the Government's maximum subsidy of £3,750. But it's not just Chinese brands who have their own grants. European manufacturers are in on the act too in a bid to 'proactively' offer car buyers 'financial support' and to 'help them make the switch to electric'. Brands such as Fiat have always been ahead of the game, offering customers an EV grant since the Conservative Government removed the UK's Plug-In Car Grant back in 2022. So, while we wait to know for sure which new EVs will be eligible for Labour's subsidies of between £1,500 and £3,750, we've rounded up the car makers that have guaranteed to slash money off their models. Here are EV brands to go to if you want to secure a decent saving on your new electric car. MG - its own Electric Car Grant Offer ends: 30 September 2025 but likely to roll over In terms of UK sales, MG is the most prominent Chinese brand to announce its own Electric Car Grant in recent days. As of 21 July, MG offers buyers £1,500 off select EV models 'in clear support of the Government's initiative'. The grant will be offered to private buyers of the new MG4 EV and the MGS5 EV. MG says this is 'over and above any incentives currently offered by MG's 255 UK dealer partners'. At the time of writing this includes a £1,000 test drive offer, so buyers can get up to £2,500 off either new models. The MG4 EV starts at £26,995 and goes up to £36,496. The MGS5 EV starts at £28,495 and goes up to £33,495. In both cases, this is before MG's grant is applied. While the combined test drive and EV grant offer run until 30 September, the EV grant is almost certainly set to continue on, MG told us. Alfa Romeo - Italian EV Grant Offer ends: 30 September 2025 As of the 22 July, Italian car brand Alfa Romeo has introduced the 'Alfa Romeo EV Grant' to 'make the exciting world of electric driving even more accessible'. The £1,500 grant will be available against the on-the-road (OTR) price and is accessible on top of existing retail offers including 0 per cent APR on Personal Contract Purchase (PCP) and a complimentary EV home charger and standard residential installation. The grant will be applicable across all Junior Elettrica models; the Elettrica, Elettrica Speciale, Elettrica Intensa, and Elettrica 280 Veloce. The Elettrica starts at £33,905 before the EV Grant is applied and goes up to the 280 Veloce's £42,305 price tag (again before the grant is applied). Leapmotor - the Leap-Grant Offer ends: 30 September 2025 Also under the Stellantis umbrella, Leapmotor UK was the first Chinese EV maker to offer its own electric car grant, and the first car manufacturer in general to do so after the Government announced its EV Grant. The Leap-Grant ranges from £1,500 to £3,750 depending on the model. At the top end, the Leapmotor C10 family SUV will be available with a £3,750 grant applied and will cost £32,750 now. The small city Leapmotor T03 now has a £1,500 grant applied and will cost £14,495. By launching its own self-funded EV grant, effective from 18 July, Leapmotor says it is 'taking a proactive leap forward to help electric car buyers'. Great Wall Motors (GWM) - Green Car Grant Offer ends: 30 September 2025 Great Wall Motors (GWM) says it is 'taking decisive action to help drivers switch to electric' by offering a £3,750 'Green Grant'. As GWM only has one electric car on offer it's easy for customers to know what will be eligible for the grant – the Ora 03. All Ora 03 (previously known as the 'Funky Cat') models are applicable – the Pure, Pro and GT. With the grant applied, the cheapest Ora 03 will now be £21,245 after savings. The grant is also able to be used towards a PCP deposit. Fiat - the manufacturer-supplied car grant from 2023 Offer ends: 30 September 2025 Fiat introduced its own electric vehicle grant, the 'Fiat E-Grant' in June 2023. The initiative was launched after the previous government regime discontinued its Plug-in Car Grant, and Fiat was the first manufacturer to do this. At first, Fiat provided a £3,000 incentive for buyers of the Fait 500e and 500e Convertible. But as of January this year, the Italian marque expanded the offering to all customers of the 600e and Abarth 500e models too. The grant is now built into those two models' OTRs and applied to both retail and fleet customers. As a result, the 600e and Abarth 500e are both available from £29,975. What is the Electric Car Grant and why might Chinese brands be excluded? The Electric Car Grant (ECG) is the Government's new big hope to drive sales of EVs in the run-up to the end of the decade as it continues to steer towards outlawing the availability of new petrol and diesel cars from 2030. Transport Secretary Heidi Alexander confirmed the ECG's availability on Monday 14 July, stating: 'The EV grant will not only allow people to keep more of their hard-earned money - it'll help our automotive sector seize one of the biggest opportunities of the 21st century.' Only cars up to £37,000 qualify for the grant, which rules out premium models, including every Tesla on sale. No Audi, BMW or Mercedes EV will be eligible either. Some 50 existing models are technically eligible for the grants solely based on their starting price. We've listed these below. Manufacturers must apply to be eligible for the scheme with their sub-£37,000 cars on a 'first come, first served' basis. This means that motorists will not need to fill in any additional paperwork to receive the grant, with all administration handled by the car maker, dealership, and the Government. But because manufacturers must apply for the scheme, it may take weeks for discounted EVs to begin appearing in showrooms, experts say. The new scheme uses a two-tier system based on 'sustainability criteria' to determine the size of the subsidy provided. Only the greenest models - considered 'band one' - receiving the full £3,750 amount. Band two cars with a lower eco rating will be eligible for a reduced amount as low as £1,500. Bands are determined by each maker's Science-Based Target (SBT) - an industry-wide scheme, with manufacturers needing to meet carbon scores below a specific criterion to achieve the highest green standard. Volkswagen and Renault Group have both confirmed they are signed up with the SBT scheme. ECG bands - which could later expand beyond two tiers - will be determined by how much CO2 is emitted in an EV's production, assessing the energy used during assembly as well as battery manufacturing. An overall SBT score is weighted 70 per cent for the CO2 produced during battery manufacturing and 30 per cent for vehicle assembly emissions. Threshold levels to achieve the full £3,750 discount or the lower banded £1,500 have yet to be made public. However, vehicles that don't meet a minimum level will not receive a grant at all. This could be bad news for Chinese EV makers, which currently offer some of the most competitive prices but could fall foul of the emissions-based rules. Speaking on the BBC's Today programme on Wednesday (16 July), Transport Minister Lilian Greenwood said she did not expect any cars that are produced in China to be eligible. 'The grant is restricted to those manufacturers that reach minimum environmental standards,' she said. 'And, frankly, if you generate a lot of the electricity that powers your factory through coal power stations, then you are not going to be able to access this grant.' According to The Telegraph, the Chinese embassy has hit hack and the scheme's stringent requirements. It has called on the UK to follow World Trade Organisation (WTO) rules and create a 'non-discriminatory environment for investment'. WTO rules stipulate that members must not give favourable treatment to one country over another when it comes to trading goods and services. An embassy spokesperson added: 'The Chinese side is closely following the situation and will resolutely safeguard the legitimate rights and interests of Chinese companies.'
South Wales Argus
23 minutes ago
- South Wales Argus
Keir Starmer and Narendra Modi set to agree Britain-India trade deal
The Prime Minister and his Indian counterpart also agreed ahead of their meeting on Thursday to ramp up joint efforts to tackle illegal migration and organised crime. The UK-India trade deal is understood to be the largest of its kind for its economic impact on Britain. It will see tariffs on an array of British goods reduced from an average of 15% to 3%, with the aim of boosting the £11 billion of imports into the south Asian nation. Whisky tariffs will be slashed in half, according to the Government, and will fall further over successive years, while other industries including soft drinks, cars and cosmetics are also expected to see cheaper duties. Before his meeting with Mr Modi to confirm the deal, Sir Keir said: 'Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change. 'We're putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we're determined to go further and faster to grow the economy and raise living standards across the UK.' The deal is expected to result in 2,200 jobs across the country and £6 billion investment by British and Indian businesses. Business Secretary Jonathan Reynolds said the investment will 'reach all regions and nations of the UK so working people in every community can feel the benefits'. Business and Trade Secretary Jonathan Reynolds (James Manning/PA) He added: 'The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business.' The UK and India are also bolstering co-operation on tackling corruption, fraud, organised crime and illegal migration, by sharing criminal records and other intelligence. The deal has not given the UK as much access as it would have liked to India's financial and legal services industries. The agreement promises some benefits for the UK's financial services, with Chancellor Rachel Reeves understood to have pushed on behalf of the sector in discussions with her Indian counterpart. But more wide-ranging access was not agreed, and talks continue on a bilateral investment treaty aimed at protecting British investments in India and vice versa. The two nations also continue to discuss UK plans for a tax on high-carbon industries, which India believes could hit its imports unfairly. The Prime Minister is being pressed to raise the case of Jagtar Singh Johal (Family handout/PA) Negotiations on the deal began when Boris Johnson was prime minister in 2022, and were concluded in May this year. Labour sought to portray closing the deal, as well as trade agreements with the US and the EU, as evidence of the Government's pragmatism and global outlook. But shadow business secretary Andrew Griffith said it had only been made possible 'because of Brexit delivered by the Conservatives'. He added: 'Any trade deal that can successfully cut regulation which stops Britain's makers from creating new jobs and wealth will be a step in the right direction. 'But the irony should not be lost on anyone that any gains from this trade deal will be blown out of the water by (Deputy Prime Minister) Angela Rayner's union charter, stifling business with red tape, the jobs tax and, come autumn, Rachel Reeves' inevitable tax hikes that will punish Britain's makers just to reward those who do not contribute.' The Confederation of British Industry (CBI) has said that the signing 'sends a powerful signal that the UK is open for business and remains resolute in its commitment to free and fair trade'. Chief executive Rain Newton-Smith added: 'A trade agreement with India – one of the world's fastest-growing economies – is a springboard for long-term partnership and prosperity. UK firms can take advantage of this new platform to scale, diversify and compete on the global stage.' Elsewhere, Sir Keir is facing calls to raise the case of Jagtar Singh Johal, a British citizen who has been detained in India since 2017, when the Prime Minister meets Mr Modi. The Scottish Sikh is accused of being a member of the Khalistan Liberation Force, which is banned as a terror group in India. His family say he is being arbitrarily detained, with his brother Gurpreet Singh Johal insisting the matter should be 'high on the agenda when the prime ministers meet'.
Rhyl Journal
34 minutes ago
- Rhyl Journal
Keir Starmer and Narendra Modi set to agree Britain-India trade deal
The Prime Minister and his Indian counterpart also agreed ahead of their meeting on Thursday to ramp up joint efforts to tackle illegal migration and organised crime. The UK-India trade deal is understood to be the largest of its kind for its economic impact on Britain. It will see tariffs on an array of British goods reduced from an average of 15% to 3%, with the aim of boosting the £11 billion of imports into the south Asian nation. Whisky tariffs will be slashed in half, according to the Government, and will fall further over successive years, while other industries including soft drinks, cars and cosmetics are also expected to see cheaper duties. Before his meeting with Mr Modi to confirm the deal, Sir Keir said: 'Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change. 'We're putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we're determined to go further and faster to grow the economy and raise living standards across the UK.' The deal is expected to result in 2,200 jobs across the country and £6 billion investment by British and Indian businesses. Business Secretary Jonathan Reynolds said the investment will 'reach all regions and nations of the UK so working people in every community can feel the benefits'. He added: 'The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business.' The UK and India are also bolstering co-operation on tackling corruption, fraud, organised crime and illegal migration, by sharing criminal records and other intelligence. The deal has not given the UK as much access as it would have liked to India's financial and legal services industries. The agreement promises some benefits for the UK's financial services, with Chancellor Rachel Reeves understood to have pushed on behalf of the sector in discussions with her Indian counterpart. But more wide-ranging access was not agreed, and talks continue on a bilateral investment treaty aimed at protecting British investments in India and vice versa. The two nations also continue to discuss UK plans for a tax on high-carbon industries, which India believes could hit its imports unfairly. Negotiations on the deal began when Boris Johnson was prime minister in 2022, and were concluded in May this year. Labour sought to portray closing the deal, as well as trade agreements with the US and the EU, as evidence of the Government's pragmatism and global outlook. But shadow business secretary Andrew Griffith said it had only been made possible 'because of Brexit delivered by the Conservatives'. He added: 'Any trade deal that can successfully cut regulation which stops Britain's makers from creating new jobs and wealth will be a step in the right direction. 'But the irony should not be lost on anyone that any gains from this trade deal will be blown out of the water by (Deputy Prime Minister) Angela Rayner's union charter, stifling business with red tape, the jobs tax and, come autumn, Rachel Reeves' inevitable tax hikes that will punish Britain's makers just to reward those who do not contribute.' The Confederation of British Industry (CBI) has said that the signing 'sends a powerful signal that the UK is open for business and remains resolute in its commitment to free and fair trade'. Chief executive Rain Newton-Smith added: 'A trade agreement with India – one of the world's fastest-growing economies – is a springboard for long-term partnership and prosperity. UK firms can take advantage of this new platform to scale, diversify and compete on the global stage.' Elsewhere, Sir Keir is facing calls to raise the case of Jagtar Singh Johal, a British citizen who has been detained in India since 2017, when the Prime Minister meets Mr Modi. The Scottish Sikh is accused of being a member of the Khalistan Liberation Force, which is banned as a terror group in India. His family say he is being arbitrarily detained, with his brother Gurpreet Singh Johal insisting the matter should be 'high on the agenda when the prime ministers meet'.
