/Government to run ‘bankrupt’ Birmingham City Council
Government to run 'bankrupt' Birmingham City Council

Government to run ‘bankrupt’ Birmingham City Council

Government to run ‘bankrupt’ Birmingham City Council – also launch an inquiry

Levelling Up Secretary Michael Gove has announced he will appoint commissioners to take over Birmingham City Council.  They will preside over a recovery plan.

He’s also launching a local inquiry into the authority after it declared itself bankrupt.

This month Britain’s largest local authority issued a section 114 notice declaring it did not have the resources to balance its budget.  This because of a series of problems including a spiralling equal pay bill and IT failures.

It has a budget shortfall of £87m for the current financial year, projected to rise to £165m in 2024-25.

Birmingham City Council announced it does not have the close-to-a-billion pounds needed to meet equal pay commitments of £760 million, an IT repair bill of £100m and the rising costs of social care, inflation and housing demand.


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