Birmingham City Council, the country’s largest authority, has filed for bankruptcy as it’s unable to meet its financial liabilities.
Birmingham City Council has blamed its inability to meet its financial obligations on; equal pay claims, expenses of new IT systems, and funding cuts. With a current shortfall of £87 million that’s expected to rise to £165 million in 2024/25, sale of some of the city’s most iconic landmarks is being considered such as Birmingham museum, Birmingham airport and the central library. This alone will not bridge the gap, and Michael Gove has warned that staffing cuts and a council tax increase will likely be required.
Mr Gove claimed that “the residents and businesses in Birmingham deserve better” after being let down by their local authority.
A local enquiry is going to be pivotal in understanding how Birmingham Council has ended up bankrupt, and how it can move forward to secure best value for its residents.
Birmingham is not alone, 26 other councils have voiced a real risk for bankruptcy in the near future.
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For more information on Birmingham’s bankruptcy read this article from the Independent.