Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government what steps they are taking to protect the interests of the residents and taxpayers of Birmingham following the recent announcement about that city's bankruptcy.

The Secretary of State, on 5 October 2023, confirmed his final decision to intervene at Birmingham City Council to protect residents and taxpayers in the city. He is satisfied that there is evidence of Best Value failure and that intervention is necessary for Birmingham to secure compliance with the Best Value Duty under the Local Government Act 1999. This follows consideration of representations received on the proposed intervention package which was announced to Parliament on Tuesday 19 September.

A team of six commissioners will be led by Max Caller CBE, an experienced local government professional and former commissioner, and will be able to provide advice and challenge the council whilst making decisions directly, if necessary. They will have powers relating to governance, finance and recruitment and bring expertise in local government improvement, finance, HR, equal pay, housing, ICT and commercial projects. They will be joined by Lord John Hutton, a former Defence Secretary and Business Secretary under a previous Government, and former Mayor of Tower Hamlets John Biggs, as political advisors to support the political leadership as they take the difficult decisions that will be required. Directions have also been issued to the Council requiring them to take specific actions, including the preparation and agreement of an improvement plan within six months and to review all corporate services within twelve months, to ensure that public trust in the Authority is restored. Commissioners and the Directions will be in place for a five-year period subject to any further decisions by the Secretary of State.