17 September 2023 , 18:02
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Birmingham City Council could be forced into a fire sale of assets after going bankrupt.
The Central Library, Birmingham Museum and Art Gallery, Sarehole Mill museum and the council’s stake in Birmingham airport could be sold. The council, Europe’s largest local authority, will be put into special measures this week. Tomorrow, Housing Secretary Michael Gove is set to announce that government-appointed commissioners will take over day-to-day running of operations and the potential sale of assets.
The council, which owns 54,000 council houses, has previously sold assets, including the National Exhibition Centre for £307million in 2015. This month, the council announced it could no longer balance its books and issued a section 114 notice, which prevents it from making spending commitments due to “unprecedented financial challenges”.
The council has had to pay about £1.1billion in an equal pay ruling that female employees missed out on bonuses paid to male colleagues. Last month, it announced a budget shortfall of £87.4m for 2023-24. Council leaders will present a financial recovery plan at an extra-ordinary meeting on September 25.
A government source told The Sunday Times: “The scale of mismanagement is worse than we thought.”
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