We sent out camera teams to speak to Birmingham residents regarding the councils current financial crisis.
Birmingham City Council may face the necessity of divesting its holdings to procure funds for alleviating its severe financial predicament. The council lodged a Section 114 notification the previous week, signifying that the largest locally devolved authority in Europe has essentially declared insolvency.
In accordance with this notification, the council has suspended non-essential expenditures and will not permit any fresh outlays. This development arises from the council's struggle to satisfy an equal pay settlement amounting to £760 million.
Mayor Andy Street has advocated a three-pronged strategy to the government. This encompasses seeking authorisation for utilising asset sales to address equal pay obligations, assembling a cadre of experts to oversee a rescue blueprint, and initiating a comprehensive and transparent independent examination into the council.
Much like the divestment of its stake in the NEC in 2014, Birmingham Airport is also under consideration for potential sale. Furthermore, the council possesses assets valued at approximately £2.4 billion, encompassing the venerable council edifice in Victoria Square, roughly 26,000 acres of land, and 6,500 property holdings (excluding residential units, infrastructure, and educational facilities). All of these assets are now potentially subject to disposal for the purpose of generating funds.
