Birmingham's approach to the sustainability agenda is under-resourced, poorly-led and lagging behind the drive displayed by other local authorities, according to a damning report published today.

A city council scrutiny committee inquiry condemns insufficient accountability among council chiefs for taking sustainability issues forward and points to a lack of political enforcement at cabinet level.

An interim report is critical of the council's "token gesture" in adopting Fair Trade City Status while failing to make the use of Fair Trade goods from small independent producers compulsory for council business.

The redevelopment of Eastside is in danger of failing to live up to a pledge to be an example of sustainability and the council is fighting shy of using legal powers to force private sector developers to include sustainable features in building schemes, the report adds.

The scrutiny findings follow The Birmingham Post's Tomorrow's World series, in which experts questioned whether Birmingham and the West Midlands were serious about the sustainability agenda and pinpointed Eastside as a project where the council's commitment would be tested.

Only a fraction of the council budget is spent promoting sustainability, way below the #200 million a year recommended in the Stern Report.

The council has only a job share, equivalent to one person solely dedicated to sustainability issues, compared with teams of up to 40 officers at other leading local authorities. The report urges the council to switch its procurement strategy – the purchase of #900 million worth of goods and services each year – to give priority to buying from sustainable suppliers. There is also a suggestion that supplementary planning guidance be issued, placing a legal requirement on developers to promote sustainability.

The committee is recommending an urgent review of budgets for sustainability and also wants to see the creation of a cabinet member for sustainability and climate change.

The report warns: "We believe that leadership is fundamental to our vision of a sustainable Birmingham and is something that needs to be addressed not only politically but corporately too.

"People are looking for stronger leadership from Birmingham City Council, both corporately and politically. We are aware of best practice in other local authorities, where the key issue for success has been strong leadership through political will and senior-level champions."

Committee chairman Steve Bedser said his six-month inquiry had uncovered pockets of excellent work but the overall picture was that the council could do better.

Coun Bedser (Lab Moseley & King's Heath) stressed that the all-party report did not seek to criticise individuals but rather to highlight the lack of a corporate approach to the subject.

He added: "Sustainability issues need to occupy primacy at managerial and political levels. We are giving some direct messages about leadership."

Paul Tilsley, the deputy council leader, who has overall responsibility for sustainability issues, said Birmingham had stepped up its efforts during the past year. Next year's council budget is likely to contain substantial additional funding for the green agenda.

Coun Tilsley (Lib Dem Sheldon) said he was trying to improve the city's record following the "very mediocre" efforts of the council's former Labour administration, which lost office in 2004.

He added: "We are starting from a very low base, but I have a vision where people will want to come to look at development in Birmingham because it will be at the cutting edge of sustainability."

Karen Leach, a spokeswoman for the Eastside Sustainability Action Group, said Birmingham should follow the example set by other local authorities in using supplementary planning guidance to force builders to plan sustainable development.

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