Calls for public inquiry into council bankruptcy

CALLS for a public inquiry into Birmingham City Council's financial turmoil have intensified amid a row over its crisis.

- ALEXANDER BROCK News Reporter

A sign calling for an inquiry into Birmingham City Council's finances at the protest on Tuesday. Right, independent election candidate James Cross

A group of academics and financial experts has argued that errors in forecasts of reserves and equal pay liabilities led to the council declaring itself effectively bankrupt.

What followed this alarming moment in 2023 were unprecedented cuts to local services - hikes in council tax and government-appointed commissioners being sent in to oversee the council’s recovery.

In an open letter to Local Government Secretary Steve Reed, the group said the decision had “damaging” consequences for residents.

Amid such concerns, council leader John Cotton said the authority was “on track to deliver a balanced budget without the need for exceptional financial support” this year.

But the group of experts wants to see a public inquiry carried out to avoid similar situations happening at other local authorities.