Birmingham was never bankrupt, say finance experts

There should be a public inquiry into how Birmingham City Council declared itself effectively bankrupt in 2023 – a decision that was “materially misstated”, a group of academics and financial experts say.

In an open letter to Local Government Secretary Steve Reed, the signatories said errors in forecasts of reserves and equal pay liabilities led to the issuing of the section 114 bankruptcy notice.

In response, council leader John Cotton said the authority was “on track to deliver a balanced budget…