The Government has announced emergency measures to help run Birmingham City Council during its financial crisis.
Levelling Up Secretary Michael Gove has announced he will appoint commissioners to take over the council and launch a local inquiry after the council issued a section 114 two weeks ago.
Mr Gove told Parliament today that the intervention was necessary because the local authority was ‘failing to comply with its best value duty.’
‘I do not take these decisions lightly, but it is imperative in order to protect the interests of the residents and taxpayers of Birmingham, and to provide ongoing assurance to the whole local government sector,’ he said.
‘As we devolve more power to local government overall, we must demand sharper accountability. And the need for action in Birmingham is pressing.’
Birmingham City Council leader Cllr John Cotton welcomed the announcement.
He commented: ‘On becoming Leader, I was concerned that there was a lack of senior capacity at the council to deal with the issues that we face, which is why we asked Secretary of State Michael Gove and the Local Government Association to help us rebuild that capacity and support us to get the budget on track. Today's announcement is an important step in that direction.’
The council revealed earlier this year that it was facing a £750m equal pay bill. It is also facing a possible £100m bill for an IT and HR contract.
UNISON head of local government Mike Short said years of Government spending cuts had affected local authorities across the country.
‘Birmingham isn't the only council to have been forced to issue a section 114 notice, several others have already been in that unenviable position. Much of that blame must lie at the government's door,’ he commented.
‘What really matters is finding a sensible solution, and quickly. The city's residents and staff at the council will be understandably anxious.’
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If this article was of interest, then check out our feature, 'Preventing future Section 114 notices'.
