Birmingham City Council says bankruptcy is in the past

Birmingham City Council says it is no longer effectively bankrupt after closing a reported £300m budget gap and that its 2026-27 budget is balanced with £130m planned investment in services.

Birmingham City Council says it is no longer effectively bankrupt after steadying its finances two-and-a-half years after a budget crisis. The council published budget documents ahead of a cabinet meeting next week that describe the 2026-27 position as balanced. The documents propose £130m of investment in services. The council's problems began in autumn 2023 with a large shortfall linked in part to equal pay liabilities and a costly IT upgrade. Key facts: - The council reports it has closed a £300m budget gap and worked to tackle equal pay liabilities that contributed to the 2023 shortfall. - It states the 2026-27 budget position is "balanced" and includes £130m planned investment in services. - Government commissioners were in place during the recovery, and the budget documents were published ahead of a council cabinet meeting next week. Summary: The council's statement frames the situation as a move from the acute budget crisis of 2023 to a stabilised position for 2026-27. The published budget documents and the upcoming cabinet meeting will form part of the formal review and decision-making on the council's finances.