Birmingham City Council Leader, Cllr. John Cotton has declared that Birmingham City Council is no longer 'bankrupt', as budget proposals set to deliver a funding boost to frontline services are published.
Almost two-and-a-half years after issuing a Section 114 Notice, the proposals for a balanced revenue budget in 2026/27 includes an extra £130m investment in council services, focussing on cleaner, safer streets and better local services. This position is supported by the advice of our statutory officers, including the S151 Officer and Commissioners.
The proposed budget will be discussed at Cabinet next Tuesday (10 February), before councillors vote on the proposals at Full Council two weeks later (24 February). Cllr Cotton, who has led the authority’s recovery, said: "The council is no longer under a Section 114 Notice.
“Thanks to the decisive, tough action we took to get the council back on track, the ‘bankrupt Birmingham’ tag is now a thing of the past. This is a significant moment in the council’s recovery and is down to the sheer hard work that has been undertaken here in Birmingham by members and officers, supported by commissioners.
"We are back in the mainstream of local government. We have closed a £300 million budget gap, we’ve tackled our equal pay liabilities, and we are getting to grips with improving the services that the council provides for the residents of Birmingham.
"This is an important milestone in our improvement journey and we will continue to take the difficult decisions required to be the council the people of this city deserve. I'm determined that the mistakes of the past will not be repeated, as we drive further efficiencies to deliver better services and value for money for council taxpayers.
"I’m ambitious for Birmingham’s future. Now we will step up our work with West Midlands Mayor Richard Parker and Government to invest in our communities, delivering the homes, jobs and services that the people of this city deserve."
