City of Birmingham Skyline

Birmingham City Council in Financial Distress

Birmingham City Council has issued a Section 114 notice, effectively declaring itself bankrupt. This means that the council has insufficient resources to meet its financial liabilities, including a potential £760 million bill for equal pay claims.

The council has said that it will tighten spending controls and put all new spending on hold, with the exception of protecting vulnerable people and statutory services. This is a significant development for the city, as the council is a major employer and provider of services.

In a joint statement, council leader John Cotton and his deputy, Sharon Thompson, said: "Like local authorities across the country, it is clear that Birmingham City Council faces unprecedented financial challenges, from huge increases in adult social care demand and dramatic reductions in business rates income, to the impact of rampant inflation.

"We implemented rigorous spending controls in July, and we have made a request to the Local Government Association for additional strategic support.

"Today's issuing of a section 114 Notice is a necessary step as we seek to get our city back on a sound financial footing so that we can build a stronger city for our residents.

"Despite the challenges that we face, we will prioritise core services that our residents rely on, in line with our values of supporting the most vulnerable."

The Mayor of the West Midlands, Andy Street, expressed his concern in the statement below, but insisted the city was not failing  


The chairman of the Local Government Association, Shaun Davis, said last night that a number of councils are close to facing the same financial fate as Birmingham either this financial year or in the next financial year.

Image: iStock


PSE April/ May 2024

Alarming decline in UK costal water quality

Dive into our latest edition for April/May 2024!


More articles...

View all
Online Conference


2024 Online Conferences

In partnership with our community of public sector leaders responsible for procurement and strategy across local authorities and the wider public sector, we’ve devised a collaborative calendar of conferences and events for leaders of industry to listen, learn and collaborate through engaging and immersive conversation.

All our conferences are CPD accredited, which means you can gain points to advance your career by attending our online conferences. Also, the contents are available on demand so you can re-watch at your convenience.

Public Sector Executive Podcast

Listen to industry leaders on everything within the public sector

From government policies and public administration to education, healthcare, and infrastructure, we explore the challenges and innovations shaping our communities.


Join us as we speak with industry leaders, policymakers, and frontline professionals, providing you with valuable insights and perspectives to stay informed and engaged with the issues that matter most.