By Professor John Clancy and Professor David Bailey

It is a truth universally acknowledged that when you resort to defamatory insults in rational argument, then you have lost the argument. Max Caller has done just that.

The Birmingham Mail Letter

In his letter to The Birmingham Mail last week, he did not properly address the rational points put to him, he just descended into the gutter and threw really serious, but unfounded, defamatory insults around.

In doing so, he has to expect scrutiny of himself as a politician, not as some (un)civil servant; and expect too that some will join him in the gutter.

What will the Deputy Prime Minister say?

Max Caller has overreached himself with the letter, and he will regret it. For he effectively represents the Secretary of State, the Deputy Prime Minister, in Birmingham.

So she has to read that letter where he refers to a learned PhD in public sector accounting and a Brummie Professor of Business Economics as 'financially illiterate' and ask herself whether it is still appropriate for him to be her representative in the city.

We all know the answer to that question. There are myriad reasons why he needs to be summarily dismissed, but this is the most glaringly recent.

The Michael Gove Hangover Man

He was probably unaware that he aped his true Tory master Michael Gove in his letter by effectively implying that 'we've had enough of experts' and so flung muck at them.

As someone who started his (not very distinguished) career in local government as an inspector of sewers, Maxwell Marshall Caller is used to the gutter, and worse.

Max Caller is Limited

He has his own limited company – arrogantly named Max Caller Limited. Even Elon Musk didn't go that far. He'd be better calling it Max Caller (Very) Limited.

He is not in this for the betterment of local government – he is in it for the money. And according to the Birmingham Mail he is earning about £1,200 a dayfor his minor exertions. Which we assume will end up in Max Caller Limited.

A Modest Man, with much to be modest about

He is only experienced, really, in being a local government consultant.

And one thing we can deduce from his inane letter is that he clearly knows sod-all about Pension Funds. He is Pension Fund-illiterate: Max Caller Limited understanding of these things.

The last time he did anything of even minor note in local government was 21 years ago. He has zero recent experience beyond his own consultancy and persuading mainly Tory politicians that he can enact their Tory ideological will in local government. The Labour Party should have nothing to do with him, and sack him.

Back in the long-forgotten mists of time, 20-odd years ago, he was a chief executive of a couple of inconsequential tiny local authorities: Hackney and Barnet. (Apologies to the not inconsequential folk who live there.)

Where does he get off trying to give advice to those doing the very tough job of running multi-£billion revenue cities, where (after 14 years of Tory governments) now-entrenched and widespread poverty dominates? He has no experience.

Yes, go to Slough (as he has) and advise them (as he has) - that's about the right level he has the experience to apply.

The emerging Local Government Pension Funds Scandal

He is part of a wider local government establishment elite which has hidden the dirty big secret of the Local Government Pension Fund scandal for the last 15 years.

And it is a scandal. It will come out: just as the Post Office Scandal did. And the Deputy PM needs to bear that in mind. Birmingham is the canary in the mine. She shouldn't attach herself to it or to Gove-hangover Caller.

We will explore and explain this further in our next blog.

Unlawful

We don't believe the consultation on this year's budget (which ridiculously took place last February) has been lawful, and so the budget proposed cannot be lawful and is subject to a likely successful judicial review.

Return to Sender

In particular, Max Caller in his letter has now admitted that the WM Pension Fund IS going to start returning the surpluses in the fund to Birmingham City Council. So he finally agrees with us. That is unspotted huge news.

But he and the council had not told the people of Birmingham this (his odd-peculiar letter last week aside).

The citizenry should have been told that previous budgets included massive overpayments to the fund of upto £0.6Billion, which he accepts will now be returned. And that the budget hasn't accounted for this, because poor Max Caller and his associates were Limited in their knowledge of the regulations.

Recertify - now, not 2026

The surplus could be returned for the 2025-26 budget through mid-cycle recertification, and refund by negative employer's contributions, if the Commissioners had understood the relevant rules and regulations, which they didn't. But it still can be re-certified, as we called for in our Action Plan.

Were Birmingham Tax Payers, Council Tax Payers, residents, business residents and employees told they would be paying £151million over the next four years just in management expenses to the WMPF, almost entirely in investment management fees, and on the basis of the last 10 years for likely rubbish performance?

And that they had already paid £300million over the last 10 years? So they are now supercharged for the next four years?

And that the West Midlands Pension Fund has paid £1Billion in management expenses over the last 10 years?

The axe has to fall there first – before Harborne Day Centre.

That option should have been before the citizens of Birmingham. It wasn't. It was either deliberately hidden, or Caller simply didn't know. We would suggest the latter, in the absence of Caller providing contrary evidence.

Unaccountable accounts

And how could the citizens of Birmingham be properly and meaningfully consulted, as the law requires, without any accounts from the Council since 2022? This March's 2024 accounts in particular held evidence of the surplus in the pension fund. That was withheld from them on his specific orders and, worse, Caller has simply refused to tell us what it is to this day.

Warning! an unlawful budget about to be set

This failure meaningfully to consult is so glaring that successful judicial review is an open door.

In the absence of the meaningful consultation, and under Max Caller's watch, the council is about to set an unlawful budget.

We would be happy to assist anyone in a legal challenge to the council over its budget setting this year, but also on the very issue of the likely £0.6 billion overpayments to the pension fund, and the share of the management expenses of the fund.

There can be further successful challenge by judicial review as to why the council has not sought mid-cycle Recertification of its employer's contributions.

Prove it, Max

Unless he wants to look like he was asleep at the wheel and thus incompetent, Max Caller MUST provide evidence by way of documents, minuted meetings/telephone calls, videos of teams/zoom meetings, letters, emails, call logs etc. within Birmingham City council (and with DHCLG) prior to December 2024 exactly when he was both,

a. aware of the surpluses in the Birmingham Pension Fund section of WMPF this year (and of it being effectively in-balance the previous year); and

b. that he incorporated this in his advice and instructions to officers and councillors in relation to the budget, and informed DHCLG.

Damascene Conversion?

He must provide the same for what appears to be his sudden realisation that the surpluses WILL now inevitably be returned to Birmingham's revenues. And what does he now estimate the surplus in 3 months time will be, as the scheduled cuts take place?

He says he and his fellow commissioners were "fully aware" of this. When did he/they become fully aware?

Prove it.

And even in the unlikely event they did, what did they do about it?

If he didn't tell anyone in Birmingham or Whitehall, then he's being economical avec l'actualité.

If officers or cabinet members or other councillors of Birmingham City Council believe they did not have this specifically communicated to them by the commissioners, they should say so; and tell the Deputy Prime Minister so.

Maxwell Caller Pension Scandal

It is ironic that Caller mentioned the Mirror Group Pensions Scandal in his ridiculous letter, as we have in him our very own Maxwell Pensions Scandal, the Maxwell Caller Pensions scandal. Come clean, Maxwell.

Max Caller will look an absolute fool if one of the other hundreds of employers in the fund seeks immediate mid-cycle recertification, which will effectively force Birmingham to do the same.

Nike Moment Max!

Get on with it, Caller, and stop pretending you have no powers in this area. You are effectively using the powers of the Secretary of State.

Just do it!

And then get out of town.