Declaration in 2023 that led to spending cuts was based on underestimation of reserves of more than £1bn, shows fresh analysis
Birmingham city council was “likely never bankrupt” and the decision to issue the section 114 notice two years ago was “based on unaudited and materially incorrect information”, accounting experts claim.
The Labour-run council issued a section 114 notice in September 2023, effectively declaring itself bankrupt, triggering a wave of spending cuts and plans to sell off £750m worth of assets. This prompted the government to appoint commissioners to run the council for five years.
Source: World news | The Guardian.
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