A new report explores the impact of Birmingham’s financial crisis on communities and offers a path forward to rebuild in line with the Birmingham City Vision.

It calls on City leaders from all sectors to commit to a shared, values-led transformation rooted in transparency, collaboration, and collective accountability.

Background

In September 2023 Birmingham City Council issued a Section 114 (S114) notice, signalling an inability to meet its financial obligations. This triggered over £300 million in budget cuts with major consequences for statutory services, community infrastructure, and civic trust.

In response, BVSC Research and the University of Wolverhampton, funded by the Fusion21 Foundation and supported by Birmingham City Council, undertook research to examine the impact of the crisis, with a specific focus on the Voluntary, Community, Faith and Social Enterprise (VCFSE) sector and Birmingham’s most affected communities.

The research findings have been brought together in a recently published report which provides high-level insights. The report also offers a path forward, highlighting how Birmingham’s City Vision 2035 and its five strategic missions can be more effectively delivered. It calls on City leaders, from all sectors across the City, to commit to a shared, values-led transformation rooted in transparency, collaboration, and collective accountability.

Brian Carr, Chief Executive, BVSC said: "This is a vitally important piece of research that gives leaders in all sectors in Birmingham clear pointers for working better together for the benefit of Birmingham's citizens. I commend my colleagues within the voluntary sector for the honesty and clarity of their feedback, and Birmingham City Council for its openness to being scrutinised in a way that opens the door for further improvement. The report provides suggestions for the steps needed to realise the City Vision's commitment to build a stronger, more equal society."   Councillor John Cotton, Leader of Birmingham City Council said: "This important report takes an honest and constructive look at the challenges faced in Birmingham and the continued importance of working together to support the people and communities of this city. We are stronger together, which is why the council is working closely with the Voluntary, Community, Faith, and Social Enterprise sector, and with partners and communities right across Birmingham to build on the collaborative work that has shaped the City Vision, so we can deliver a city that tackles inequality and has a thriving economy, where all communities can enjoy greater opportunities and the wellbeing that brings."   Jo Hannan, Head of Fusion21 Foundation said: “The Fusion21 Foundation is proud to have funded this research into the impact of financial cuts affecting communities and the VCFSE sector in Birmingham. Our funding priorities — financial inclusion and resilience, health and well-being, and employment and skills — are all reflected in these findings. We’re encouraged to see how the report's insights and recommendations can support city leaders in refocusing their efforts and help pave a more sustainable and resilient path forward for Birmingham’s residents.”

The full report ‘From Challenge to Change: Understanding the Impact of Section 114 and Building Towards the City Vision, Together’, along with an Easy Read version and a Short Report for Strategic Leaders, is available here:

Read the Report

A summary of the key findings, recommendations and conclusion is provided below.

 

Key Findings

S114 Impacts

The report identifies impacts of S114 through six interconnected themes:

1. The pace and scale of cuts have placed many essential services at risk, especially those serving vulnerable groups.
2. Inequality is being amplified, with specific impacts on disabled people, ethnic minorities, women at risk, and those living in poverty.
3. The VCFSE sector is absorbing systemic gaps, often without adequate resourcing, jeopardising long-term sustainability.
4. Collaboration is both necessary and underdeveloped. Structural silos, limited co-production, and late-stage consultation hinder joint action.
5. Public trust in governance is fragile, with frustration at unclear communication and a lack of transparency in decision-making.
6. Wider knock-on effects include rising mental health issues, homelessness, and a loss of vital community infrastructure.

 

Linking with the City Vision and Promise

The research findings link closely with the City Vision’s five missions:

1. Growth and Prosperity: Local hiring, social value procurement, and workforce wellbeing must be embedded in economic strategies.
2. Knowledge and Opportunity: Cuts to early intervention and SEND transport are undermining education access. Community learning and digital access need investment.
3. Safety and Sustainability: Crisis services are stretched. Investment in housing, prevention, and place-based models is essential.
4. Health, Equity and Inclusion: Inequality is deepening. Equity Impact Assessments must be actioned and published.
5. Connected Birmingham: Libraries, day centres, and neighbourhood hubs are disappearing. Civic infrastructure must be protected and grown.

 

The five-part Birmingham Promise is broadly supported by stakeholders. However, to be realised, this must move from aspiration to implementation:

1. Be a reliable, visible partner: Communicate with clarity and consistency.
2. Deliver for local people: Define and embed quality standards through co-design.
3. Tackle inequality transparently: Use disaggregated data and share results.
4. Co-produce solutions: Resource co-production across all communities.
5. Listen and act accountably: Build feedback mechanisms and democratic scrutiny.

 

Recommendations

The following actions are proposed to drive a city-wide, cross-sector response to the crisis:

A. Governance and Leadership

• Establish mechanisms for the VCFSE and representatives from the community to scrutinise progress against the vision, mission statements and Birmingham Promise and have a genuine voice in holding the City to account.
• Create an explicit link from this activity to the City Board and other governance structures
• Embed lived experience leadership and accountability in all strategic forums, including the City Board

B. Funding and Commissioning

• Shift toward longer-term, flexible grants and joint commissioning frameworks
• Prioritise preventative and community-based services in investment plans

C. Data and Impact

• Strengthen equity monitoring and publish disaggregated data on impact
• Co-design shared outcomes frameworks aligned to the Five Missions

D. Community Infrastructure

• Protect and invest in libraries, community centres, and youth hubs as anchors of resilience
• Ensure services are available equitably across geographies and communities

E. Culture Change

• Move from consultation to co-production as standard practice
• Centre inclusion, trust, and partnership in every stage of planning and delivery

 

Conclusion: A Turning Point for Shared Action

Birmingham’s Section 114 notice is not just a financial event. It is a governance challenge, a social justice concern, and a civic opportunity. Strategic leaders across all sectors must now step forward with renewed purpose, to ensure the City Vision becomes a reality. This will require shared commitment, honest reflection, and sustained collaboration across traditional boundaries.

The foundation is there: a vibrant civic ecosystem, strong community networks, and a bold city-wide ambition. What is needed now is collective follow-through.

 

 

Further Information

• Read the Report
• Birmingham City Council – Section 114 Notice
• Birmingham City Vision: Shaping Birmingham’s Future Together
• Contact Us:  Elizabeth Goodchild, Strategic Communications Lead, BVSC: [email protected]