Birmingham City Council faces financial crisis and potential asset sales
Birmingham City Council has declared itself effectively bankrupt and is facing a financial crisis. The council issued a section 114 notice, admitting it cannot balance its budget, and is expected to face a projected deficit of £87.4 million. The council blames the shortfall on an equal pay ruling that has cost £1 billion and an IT system problem that cost £100 million to fix. The government is expected to send in commissioners to oversee the council's operations and potentially sell off assets, including Birmingham Airport.