Chief executive of troubled council to leave role

Deborah Cadman is leaving her role as chief executive of Birmingham City Council

The chief executive of crisis-hit Birmingham City Council has announced she will stand down at the end of the month.

Deborah Cadman OBE was appointed to the role in March 2021.

In an email to staff on Wednesday, she said she was "incredibly disappointed with the council’s current financial position".

Professor Graeme Betts CBE, Ms Cadman's deputy, will be acting chief executive while a permanent replacement is sought, the authority said.

This month the council signed off on a wave of cuts to services ahead of a 21% rise in council tax over two years.

It came after bosses announced last September that they could not afford to meet their financial obligations.

Facing an immediate budget shortfall of £87m, it was forced to issue a section 114 notice - effectively declaring itself bankrupt.

The council currently faces a budget gap of £300m over two years, is £1.25bn in debt to the government, has to face equal pay liabilities of up to £867m and worked up an overspend of more than £130m on an under-fire IT system.

Ms Cadman said she was initially appointed to help deliver the Commonwealth Games in Birmingham

In the message to staff, Ms Cadman said she was appointed three years ago with a brief of delivering the Commonwealth Games in the city.

She said the international sporting event was an outstanding success and one of the best ever held.

But the council boss, who previously served as the chief executive of the West Midlands Combined Authority, admitted it was always her intention to leave once the 2024-25 financial budget was agreed.

“I joined the council after a period of significant volatility that saw the organisation have four chief executives in only two years," Ms Cadman told staff.

"I have endeavoured to bring stability to the organisation including making permanent appointments to senior roles such as the directors of children’s services and housing, which has led to improvements in performance."

Max Caller, lead commissioner at the city council, wished Ms Cadman well for her future

Ms Cadman added it had been the honour of her life to serve the city where she was born and raised.

Her last day at the authority will be 22 March.

Council leader John Cotton said: "These have been incredibly difficult times and no one can doubt Deborah’s commitment to the council, the city and the region.”

Lead commissioner Max Caller, brought in by the government to oversee the council's financial rescue operation, said Ms Cadman had responded effectively over the last six months.

"I wish Deborah well for the future as she continues her long and distinguished career in public service," he said.

A spokesperson for the council confirmed Ms Cadman had resigned.

A statement added she would not receive any financial package "in excess of her contractual entitlement and her pension has not been enhanced".

Analysis by Simon Gilbert, BBC Political Reporter, Birmingham

Two months ago I sat across a table from Birmingham City Council’s chief executive and asked her, on camera, if she had considered leaving her role.

The response was an unequivocal and resounding no.

She spoke of her pride in being Birmingham-born and her desire to lead the organisation through this unprecedented crisis.

So what’s changed?

It’s true we have reached an obvious milestone with the budget signed off this month. A nice tidy point in time to announce "my work is done, time for someone else".

We know there have been calls for heads to roll over the financial crisis at the council. We know there’s an inquiry on the horizon into who is to blame.

But just eight weeks ago, there was no flicker of doubt in the chief executive’s eyes.