Government to appointment commissioners to run Birmingham City Council

Earlier this month, Europe’s biggest local authority issued a section 114 notice – effectively declaring bankruptcy – which, according the government, was an admission of its backdated equal pay liability, which is currently estimated to cost of up to £760m, as well as an in-year budget deficit that includes the costs of implementing an IT system was too significant for the council to manage.  

Secretary of state for levelling up, housing and communities Michael Gove said: “Birmingham Council’s record is of ineffective, inefficient and unaccountable government. It is failing in its basic duties. 

“Where local leaders fail, it is residents who are let down. This cannot go on.

 
“I can announce that I am today writing to the council to set out my proposal to intervene and appoint commissioners, and that I intend to launch a local inquiry. I do not take these decisions lightly, but we must protect the interests of residents and taxpayers of Birmingham and provide assurance to the sector.” 

If implemented, the proposals would see commissioners provide advice and challenge the council whilst making decisions directly, as well as be handed powers relating to governance, scrutiny of strategic decision making, finance and senior appointments.  

Additionally, directions would be issued to the council requiring them to undertake specific actions including the preparation and implementation of an improvement plan within six months, with the aim of returning the authority to a sustainable financial footing.

The government is also expected to open a local inquiry to investigate the root of the issues faced by the authority.