Stadtzentrum: Birmingham Town Hall und Council House
Foto: CARL RECINE / REUTERS
The conservative British government plans to place Birmingham under a commission in order to bring the practically insolvent city onto a path of consolidation. The council, led by the opposition Labour Party, has not fulfilled its duties adequately, explained Michael Gove, the responsible cabinet member, in Parliament in London. He also announced an investigation into how the financial imbalance could have occurred.
Birmingham ist nach London die zweitgrößte Stadt des Vereinigten Königreichs, mit mehr als 1,1 Millionen Einwohnern. Der BBC zufolge klafft ein Loch von 87 Millionen Pfund (umgerechnet mehr als 100 Millionen Euro) im Gemeindehaushalt.
Notverkauf der Bibliothek?
The city declared itself effectively bankrupt at the beginning of September. All expenses, except for the most necessary ones, were immediately halted. In a statement at that time, it was mentioned that the city was facing unprecedented financial challenges. These included significant additional expenses for adult care, a decrease in revenue from business taxes, and high inflation rates. In addition, according to the city administration’s director, John Cotton, a new IT system for the city was so problematic that it would result in follow-up costs of £100 million.
The city is also facing demands in the hundreds of millions from mostly female employees who claim that they were paid less than their male colleagues for years. Due to a court ruling, over a billion pounds have already been paid, and the additional claims are estimated to amount to 650 to 750 billion pounds.
Next Monday, the city council is scheduled to discuss a rescue plan in an extraordinary session. Media has already speculated that the city may be forced to sell buildings and properties. The Birmingham library, Birmingham Museum, and art gallery are being considered. In 2015, the city had already sold assets, including the National Exhibition Centre for £307 million.