Birmingham City Council leader determined to get authority back on "a sound financial footing"
It comes after the government confirmed commissioners will take control of the cash-strapped authority.
The leader of Birmingham City Council has vowed to get the authority back on "a sound financial footing", after it was confirmed commissioners will be brought in.
The Communities Secretary Michael Gove told MPs that he was satisfied the council is "failing to comply with its best value duty" after it effectively declared itself bankrupt by issuing a section 114 notice.
Mr Gove said the commissioners would be able to exercise certain functions as required, including on financial governance, and the council would be expected to prepare and agree an improvement plan within six months.
The minister added a local inquiry would consider the "more fundamental questions around how Birmingham got to this position" and options for how it can become a "sustainable council" in future.
Birmingham City Council leader Councillor John Cotton welcomed Michael Gove's announcement.
In a statement yesterday (19 September) on social media platform X, formerly Twitter, Mr Cotton said: "On becoming leader, I was concerned that there was a lack of senior capacity at the council to deal with the issues that we face, which is why we asked Secretary of State Michael Gove and the Local Government Association to help us rebuild that capacity and support us to get the budget on track.
"Today's announcement is an important step in that direction.
"Although this is a challenging time, and comes after a decade of cuts totalling ÂŁ1 billion, we will make the tough decisions needed to transform the council, restore financial sustainability, and deliver the services that the people of Birmingham deserve."
What went wrong?
The council has been grappling with an equal pay liability, which has grown over several years.
It is now estimated to stand at around ÂŁ1 billion and is increasing by millions of pounds per month.
It is also facing an in-year financial gap in its budget, which is currently in the region of ÂŁ87 million, and is having to spend around ÂŁ100 million on fixing errors in the implementation of a new IT system.
Mr Gove said Max Caller CBE would lead the commission.
A former chief executive of the London boroughs of Hackney and Barnet, Mr Caller was the lead commissioner into the recent intervention at Slough Borough Council, and was previously lead inspector for best value inspections at Liverpool and Northamptonshire councils.
Cllr Cotton, leader of Birmingham City Council, added: "A report outlining elements of our initial response will be considered and discussed by full council on Monday September 25 and we will continue to be on the side of our residents as we build a better Birmingham."
Protecting services
Andy Street, Mayor of the West Midlands, said: "It remains an avoidable tragedy that Birmingham City Council ever ended up in this situation, but given where we are I fully support the proposed intervention the Government has outlined today.
"What is mission critical now is for the Commissioners to work with the council to protect services for residents and businesses across the city. Both should work in tandem to address the equal pay bill as quickly and effectively as possible to get the council back on a secure financial footing.
"However the issues run far deeper than just equal pay, and so I believe Michael Gove's decision to establish a local inquiry is also absolutely the right thing to do."
Councillor Robert Alden, leader of the Conservative opposition in Birmingham, said residents deserved better and called for more transparency over equal pay claims.