The failed implementation of Birmingham City Council's new IT system could cost the taxpayer £90m more than was originally budgeted, auditors have revealed.

Costs for the rollout of the council's Oracle program, which was designed to streamline payment and human resources processes, have escalated beyond the £19m put aside for the initiative.

A report by auditors Grant Thornton estimated the cost of the failed implementation to be ‘at least £90m in excess of the original budget'. 

It also warned that the council was unlikely to have a functioning finance system until next year ‘at the earliest'.

A council spokesperson said the report made for ‘difficult reading' but was an important document that details clearly ‘where mistakes have been made'.

The auditors found the council's governance arrangements ‘did not adequately support' good management of the programme.

Birmingham was forced to declare itself effectively bankrupt in September 2023 in part due to the problems with the implementation of the IT system and an equal pay bill.