Government set to intervene with the running of Birmingham City Council
It's believed commissioners will be appointed to take over the day-to-day running of the authority
Last updated 18th Sep 2023
The Government has said it is continuing to engage with Birmingham City Council after it issued a Section 114 notice on September 5, effectively declaring it was bankrupt.
It is believed that the Secretary of State for Levelling Up, Housing and Communities, Michael Gove, will announce plans to appoint commissioners to take over the day-to-day running of the authority.
Reports have also suggested that the council may be forced to sell off assets, including its stake in Birmingham Airport.
The issuing of the notice, because the council will not be able to balance its budget in the next financial year, bans all new spending with the exception of "protecting vulnerable people, statutory services and pre-existing commitments".
It is believed an announcement could be made by the Government as soon as Tuesday.
In a statement, the Department for Levelling Up, Housing and Communities (DLUHC) said: "We continue to engage regularly with Birmingham City Council, as we have done in recent months, over the pressures it faces, including around its equal pay liability, and have expressed serious concern over its governance arrangements.
"We have requested written assurances from the leader of the council that any decision regarding the council's issues over equal pay represents the best value for taxpayers' money."
There are suggestions that the flagship Library of Birmingham, the city's Council House, the nearby Museum and Art Gallery, Aston Hall, and the Sarehole Mill Museum are all at risk of being sold off.
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.
Birmingham City Council declined to comment on the reports.