William Eichler 04 February 2026

Birmingham City Council no longer ‘bankrupt’, says leader

Birmingham City Council no longer ‘bankrupt’, says leader image
Birmingham City Council © 4kclips / Shutterstock.com.

Birmingham City Council is no longer 'bankrupt', says the local authority’s leader.

After declaring effective bankruptcy almost two and a half years ago, the city council has published proposals for a balanced revenue budget in 2026/27.

It includes an extra £130m investment in council services and nearly £95m of savings, £66m of which are new this year.

In a statement on the council’s website, the local authority said the proposed budget is supported by the advice of statutory officers, including the S151 Officer and Commissioners.

Leader Cllr John Cotton said the council was ‘back on track’ and declared ‘the “bankrupt Birmingham” tag is now a thing of the past.’

‘We are back in the mainstream of local government. We have closed a £300m budget gap, we’ve tackled our equal pay liabilities, and we are getting to grips with improving the services that the council provides for the residents of Birmingham,’ he said.

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