Birmingham City Council protests & extraodinary ‘bankruptcy’ meeting - live updates
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We’re at Birmingham Council House where an extraordinary meeting has been called following a Section 114 notice issued by the authority amid financial crisis.
Protesters from Birmingham Trades Union Council are gathering ahead of the meeting at 6pm to demonstrate against council cuts and job losses.
Protests against government take-over of Birmingham City Council
Key Events
Unions protest against Birmingham City Council cuts and job losses
Members of Unison, Unite and GMB – the trade unions representing council workers - are protesting outside the Council House ahead of the extraordinary meeting. BirminghamWorld reporters Joe Forte and Richard Gullick are at the scene.
Birmingham Trades Union Council has called for a rally on Monday to “oppose Michael Gove and his Commissioners taking apart Birmingham City Council.” They wrote on X (formerly Twitter): “Birmingham is not for sale.”


Demonstrators gather outside the Council House to prepare for their rally
Union members gather for their rally outside Birmingham Council House ahead of the extraordinary meeting due to begin at 6pm - and finish at 10pm - as council members respond to a Section 114 Notice.
The notice followed an alarming admission by BCC earlier this summer that it couldn’t afford to pay its equal pay liability - which is currently in the region of £650m and £760m and continuing to accrue at an estimated rate of between £5 million and £14 million a month.
It has also been revealed that the council needs to stump up £100m to fix its flawed IT system, Oracle, which was intended to help streamline payments across its public services.
Government commissioners empowered to run Birmingham City Council until 2028
A letter from the government to Birmingham City Council’s chief executive outlines “serious” finance and governance concerns – and reveals commissioners could be in place for five years.
It states that government commissioners will take over the running of the council for as long as five years if required and outlines in detail the “severe” situation.
The letter states: “Given the scale of the issues, the Secretary of State proposes that directions to the authority should be in place for five years, noting that the authority’s situation is severe, and the improvement and recovery journey is likely to take a number of years.


“If the Secretary of State considers at any time that it would be appropriate to change directions or withdraw them, then he will do so. His concern will be to ensure that the directions operate for as long, but only as long, and only in the form, as he considers it should operate.”
Levelling Up Secretary Michael Gove confirmed the action on Tuesday (September 19) in a statement to parliament. He said: “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.” You can read the full story by LDRS reporter Kate Knowles here: Commissioners to run Birmingham City Council until 2028
‘Our city is not for sale'
Dozens of union members from three of Birmingham’s unions have gathered outside the Council House - with more expected.
Chants of ‘No Iffs no butt’s no private sector cuts’ And our city not for sale can be heard from the demonstrators who are carrying banners and waving flags.
There have been reports that almost 1,000 workers at Birmingham City Council have applied to resign from the authority amid the financial uncertainty.


How much money does Birmingham City Council owe?
Europe’s largest local unitary authority is all but bankrupt after failing to settle equal pay claims amounting to £760m.
The council also has a budget shortfall of £87m for the current financial year – projected to rise to £165m in 2024/25 – and the authority needs to pay £100m to put right a broken IT system.
It’s expected that at least some council assets will be sold to the highest bidder as a way to escape its financial black hole.
Birmingham Conservatives are opposing the sale of key cultural landmarks. Tory leader Coun Robert Alden tweeted last night: “It would be totally unacceptable for Birmingham City Council to sell [its] Council House and Birmingham Museum and & Art Gallery complex. They must not be allowed to flog the city’s heritage.”
Which assets is the council likely to sell amid effective bankruptcy?
Birmingham City Council has not confirmed that it will keep any assets safe. It has only stated that it is reviewing “all assets”. The council holds a large portfolio. including extensive land and buildings around the city. It also has ownership, or part ownership, of some companies.
A council document states: “A Capital Strategy and Assets Review will develop options for generating capital receipts and to reduce borrowing costs. This will involve a review of all assets to assess which can and should be sold (and estimate the potential sale price). This will likely lead to an assets disposal programme.”


The report continues: “Our work to address the situation must be urgent. It will involve hard choices about what we deliver, how we operate, and the shape and size of the organisation.
“The council acknowledges that the current situation will create uncertainty and in some cases disruption, and unreservedly apologises. It is committed to ensuring citizens, partners and our own staff are regularly updated on the current situation and its future implications.”
Watch: Union members chant against cuts
Birmingham Trades Union Council chant ‘Our city is not for sale’ in protest at cuts and job losses are feared.
Watch: We meet Unite regional officer Lee Wiggetts-Clinton
We meet Unite regional officer Lee Wiggetts as a rally against Birmingham City Council cuts and job losses gets underway outside Birmingham Council House. Council members are about to hold an extraordinary meeting to respond to their effective bankruptcy.
Council meeting underway - chaired by Lord Mayor Chaman Lal
Cllr Chaman Lal opens the meeting and calls on the finance officer to update the room on the situation.


Journalists watch the meeting at the Birmingham Council House press room
BirminghamWorld reporter Joe Forte joins other journalists in the press room at Birmingham City Council


Deborah Cadman, Chief Executive of Birmingham City Council addresses meeting
Birmingham City Council Chief Executive Deborah Cadman outlines plans for recovery, including a revised budget to be approved at an other extraodinary meeting in late October among other points stated in a report here.
She also repeatedly told how the council must remain committed to equality.


‘I apologise to Birmingham’ Council leader John Cotton addresses the meeting
Addressing the meeting, council leader John Cotton said: “I apolgise for the people of Birmingham that we are faced with huge challenges. We must now work together to bring about positive changes for our residents, stake holders and the communties that we serve. This meeting will hopefully the start of our recovery,
“We are facing unprecendeted financial challenges, including inflation. the decisons this council are facing are not decisions any council wanted to have to make.
“I have been honest as leader about the need for improvement in this council. We will do everything to protect our citizens and businesses from the challenges to come. I’m determined we will make the decicions need to transform this council.”


‘Shameful inaction’ - Birmingham Conservative leader Cllr Robert Alden speaks at meeting
Cllr Robert Alden, leader of Birmingham Conservatives said: “We’ve seen a shameful amount of inaction. But this is a council issue, and the city of birmingham has a bright future ahead of it. the city will rise like phoenix from the challenges its faced with.”
He also stated that the council knew about the equal pay claims for some time. He references a report from 2019 which mentioned ‘significant financial risk’ but that the council kept their eyes closed.
He also urged the council to ‘act now’.


‘Impact on residents devastating’ - Lib Dem leader Cllr Roger Harmer speaks
‘The impat on our residetns will be devastating,” began Birmingham Liberal Democrat leader Cllr Roger Harmer as he addressed the meeting.
He spoke of his disappointment, saying the Labour leadership did not accept the blame for the financial issues the local authoirty is facing.
Cllr Harmer continued: “We need to stop the bleed by compelting an evaluation excercise. we’ve already spent nearly three months trying and failing to agree a methodology which is frankly disgraceful.


“We must do everything we can to minimise the time it takes. Why was a 0% risk placed on equal pay claims which were in the budget? If the challenges had been faced up to, we could have cut the size of the total bill and started dealing with it earlier.
“We also need to strengthen the role of scrutiny and make the most of the resources we have on this council and look at how we manage regeneration in this city. We need to look forward and see how we can rise from the ashes - our city has faced grim challeneges before and risen stronger. we must do this again
Council meeting pauses for a break
The extraordinary Birmingham City Council meeting held to discuss its financial distress has been paused for a break, following speeches from political leaders, the Lord Mayor, chief excutive and financial officer.
No exact details of specific asset sales have been discussed - or where job losses could occur - as yet. Although a further extraordinary meeting is due to be held in October. We will bring you further updates from this meeting when it resumes.
‘Worried about the government commissioners coming in’ - Green party Cllr Pritchard speaks
Birmingham Green Party Cllr Julien Pritchard speaks out about his concerns about government commissioners coming in to run the council as he addresses the extraordinary meeting- saying: “Kerslake didn’t work - why should this be any different.” He also urged for parks and open spaces to be looked after.
He added: “What a mess we find ourselves in. This is a real crisis for this council and this city. As well as funding issues nationally, it’s also true mismanagement locally has caused these issues.
“You’re not going to have £760 million in waiting in case of equal liability. There have been other councils across the country who have been dealt similar hands and played it well. This council has played theirs terribly. “


‘Difficult decisions lie ahead’ - Cllr Majid Mahmood
Labor Cllr Majid Mahmood said: “We can’t shy away from the fact there will be difficult decisions that lie ahead. we have a responsibility to the city of Birmingham. I’m committed to make the most of our support that the commissioners will bring. This isn’t about one party being better than the other, it’s about how we can work together.”


‘They should go’ - Conservative Cllr Deidre Alden speaks at extraordinary meeting
Applause in the chamber as Councillor Deirdre Alden, Conservative says: “For years low paid women in the council have been let down by Labour cabinets who haven’t done anything about equal pay.
“Birmingham’s Labour cabinet ought to resign on block for when cuts and job losses start to bite. This is the cabinet which brought our once great city to effective bankruptcy. Lord Mayor, they should go.“


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