Displaying items by tag: city council

Birmingham City Council is facing heavy criticism for its decision to sell off 755 homes built for the 2022 Commonwealth Games at an estimated loss of over £300 million. The council, which declared itself effectively bankrupt last year due to a financial crisis, cited 'challenging and volatile' market conditions as the reason for the sale. Despite the city's acute housing shortage, with over 23,000 households on the waiting list for council accommodation, they have remained empty since their completion in 2023. The decision has been branded a 'scandal' by local MP Ayoub Khan, who argues that the homes should be retained for social housing to alleviate homelessness rather than sold at a significant loss. The council's report acknowledged the financial burden this sale would impose, leaving £142m-£152m of debt unpaid and adding further pressure to the city's strained finances. The Government has ordered the council to explain why the homes were left empty for so long, as calls grow for intervention to prevent the sale. See

Nottingham City Council has effectively declared bankruptcy by issuing a Section 114 notice, indicating it cannot cover its expenses within the current financial year. The notice does not affect the council's ability to deliver statutory services such as waste collection and child safeguarding. Despite attempts to bridge a budget gap, which stood at £26 million in July and has since narrowed to around £23 million, the council's struggles persist. These financial woes have been attributed to significant central government funding cuts of more than 40% since 2010. Three Labour MPs representing Nottingham have criticised the Government for these cuts and urged it to provide adequate funding to support local services, especially given the rising demands for social care and homelessness services. They emphasised the need to shield residents from further cuts to local services amidst declining living standards. This news comes two months after Birmingham declared itself bankrupt: see