The government has announced it will send commissioners to run Birmingham city council, and launch a local inquiry, after the authority declared itself in effect bankrupt.
This month Britain’s largest local authority issued a section 114 notice declaring it did not have the resources to balance its budget because of a series of problems including a spiralling equal pay bill and IT failures.
It has a budget shortfall of £87m for the current financial year, projected to rise to £165m in 2024-25.
Michael Gove, the secretary for levelling up, housing and communities, announced on Tuesday that commissioners would preside over a financial recovery plan that could include the selling of council-owned assets, job cuts and a rise in council tax.
More details soon …