Birmingham City Council: Finance

Department for Levelling Up, Housing and Communities written question – answered at on 30 January 2024.

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Photo of Gary Sambrook Gary Sambrook Conservative, Birmingham, Northfield

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will publish the correspondence between Birmingham City Council and his Department requesting exceptional financial support by way of (a) increasing council tax above the threshold and (b) capitalisation directions to balance their budget for 2024-25 and 2025-26 financial years.

Photo of Simon Hoare Simon Hoare Chair, Northern Ireland Affairs Committee, Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

On 5 December, the Secretary of State for DLUHC published his local government finance policy statement 2024-2025. This sets out the support available, via the Exceptional Financial Support framework, to councils with specific and evidenced concerns about their ability to set or maintain a balanced budget, including where there has been local financial failure. It also confirms that as part of that process, the government will consider representations from councils, including on council tax provision.

After Birmingham City Council issued two s.114 notices in October 2023 relating to its equal pay liabilities, commissioners were appointed at the council to ensure compliance with the Local Government Best Value Duty.

Details of correspondence between councils and the department relating to exceptional financial support are not normally disclosed.

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