William Eichler 20 February 2024

Brum set to sell off £750m of assets

Brum set to sell off £750m of assets image
Image: Monkey Business Images / Shutterstock.com.

Cash-strapped Birmingham City Council is set to sell off £750m of assets and cut spending on services by £300m in an effort to balance the books.

The local authority will also hike council tax by 21% over the next two years from April, according to its budget proposals for 2024/5 and 2025/6.

Council leader John Cotton apologised ‘unreservedly’ for the significant spending reductions and council tax increase.

‘We have no alternative than to face these challenges head on. And we will do whatever is necessary to put the council back on a sound financial footing.’

The local authority also warned that up to 600 posts may be declared redundant.

Birmingham CC, the UK’s biggest local authority, was forced to issue a section 114 notice in September 2023.

Cllr Cotton said the council was facing ‘some of the biggest budget challenges in living memory’ due to the ‘national crisis’ in local government finance.

Birmingham has lost over £1bn in funding since 2011 and has been hit by inflationary pressures and rising demand for services.

The council is also facing liabilities for equal-pay claims of nearly £800m.

If this article was of interest, then check out our feature, 'Preventing future Section 114 notices'.

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