Government commissioners holding Birmingham City Council meeting
It's after the authority effectively declared itself bankrupt.
Last updated 25th Sep 2023
A special meeting's taking place today at Birmingham City Council - after government commissioners were appointed to run the authority.
The council - which has debts of over 760 million pounds, has declared itself effectively bankrupt and had asked minister for support.
It's partly down to millions being owed in equal pay claims.
There have been rumours of sales of council assets - plus talk of the historic council house being turned into a hotel to raise money.
Last week, Communities Secretary Michael Gove announced he would appoint commissioners to take over Birmingham City Council and will launch a local inquiry into the authority.
He said he was "satisfied that Birmingham City Council is failing to comply with its best value duty" after it issued a Section 114 notice.
Mr Gove added the commissioners will have the power to make decisions directly if needed, adding he is "minded" to implement the package he has set out and the city council had five working days to make representations.
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.