Crisis-stricken Birmingham City Council has raised more than £250 million through the sale of over 1,000 properties and plots of land, new figures reveal. The massive disposal programme began in September 2023, the same month the Labour-run authority issued a Section 114 notice, declaring itself effectively bankrupt.
The Scale of the Sell-Off
Data obtained via a Freedom of Information request lays bare the extensive asset sale strategy adopted to stabilise the council's finances. The sold assets include a vast array of council-owned property, from residential homes and shops to industrial premises, garages, car parks, and even a former pub.
The total revenue generated from these sales exceeds £250,625,000. Among the most significant transactions was the £50 million sale of the Bordesley Green 'Wheels' site, destined to become the new home for Birmingham City Football Club's stadium as part of the planned Sports Quarter. Other major deals include the £25 million sale of 10 Woodcock Street to Aston University and a £48 million sale of land north of Kingsbury Road.
A 'Stretching' Target and Mounting Pressure
Despite the quarter-billion-pound sum already raised, government-appointed commissioners overseeing the council's recovery have set a far more ambitious goal. The original target for asset sales was £750 million, but due to escalating equal pay liabilities, this was increased to a staggering £1 billion last year.
In a recent report, the commissioners described this as an "extremely stretching target" that will be difficult to achieve. They indicated it is "conceivable" the £750 million mark could be reached by late 2026, but only if market conditions are favourable and the current focus is maintained. They warned that failure to support the sales programme would force the council to borrow more, which would have a "far greater detrimental impact on services for Birmingham residents."
Political Fallout and Community Impact
The council's financial strategy, combining deep service cuts, council tax increases, and asset sales, has drawn fierce criticism. Conservative opposition leader, Councillor Robert Alden, condemned the sale of community assets, arguing it erodes the city's social fabric.
"That’s not abstract assets in the city," Alden stated. "It’s our community centres and historic buildings, the built infrastructure which holds together the fabric of our city. Residents are still footing the bill for Labour’s financial incompetence."
The council's financial turmoil is attributed to a perfect storm of issues, including the massive equal pay debacle, poor budget management, a disastrous IT system implementation, and demand-led pressures on services. Labour councillors have also cited years of funding cuts from the previous Conservative government.
In response to the commissioners' report, Labour council leader John Cotton claimed the authority had "turned a corner" but acknowledged there was still much to do to become a well-run council. The commissioners' report did note positive progress in some areas, including housing and children's services, and the reaching of a framework agreement on equal pay.
