The leader of Birmingham City Council has spoken out amid a dispute over plans to sell what has been described as 'prime land' near HS2. The Labour-run council has been selling hundreds of properties and land since September 2023, following a financial crisis that engulfed the authority.
More property sales were approved this year, including land at Fox Street, situated in the heart of the Knowledge Quarter and just a short walk from HS2's Curzon Street Station. The council previously stated that the vacant land suffers from anti-social behaviour, incurring costs to keep the site secured.
However, Conservative councillors have labelled it 'prime development land' and accused the Labour administration of selling it for a 'quick buck'. They argue that the council is prioritising a short-term capital injection over Birmingham's long-term financial stability. The opposition also contends that the decision is inconsistent with the policies underpinning the Knowledge Quarter Agreement, a landmark partnership aimed at attracting life sciences, advanced manufacturing, and other high-value activities to the area.
'Selling the site for other purposes would limit the availability of developable land for these high-value, employment-generating uses,' the Tories argued. Following a call-in request, the decision to sell the land was reconsidered by cabinet members at a meeting on April 28.
Addressing the row, council leader John Cotton described the Fox Street land as a 'vacant, non-income producing asset'. He explained that officers had undertaken additional analysis since the original decision. 'I think that work tests the potential benefits of retention against the very real and immediate financial costs and risks that the council continue to carry if that site was not disposed of. Disposal now secures financial certainty and removes current and future revenue pressures,' he said.
In response, Conservative councillor Ewan Mackey expressed concern: 'This is a prestigious site right outside the front door of HS2. I’m really worried about not only the site but the future of our children. I don’t want to see futures being sold for a debt tomorrow.'
Coun Robert Alden, leader of the Tories at Birmingham Council, previously stated: 'The site sits at the entrance to HS2’s new station. Selling it off now, for a scheme that does not deliver well-paid jobs, would be a huge mistake. The cabinet should be seeking a national or global headquarters to relocate from London and bring well-paid jobs with it.'
Cabinet members ultimately agreed to approve the sale once again at Tuesday's meeting. Ahead of the meeting, the council argued that there are risks associated with retaining the site, while going ahead with the sale 'secures capital certainty' and 'reduces financial risk'. The council added that it could still 'influence future use and design through the planning process in accordance with Knowledge Quarter aspirations'.
'The proposed disposal will enable this underutilised site to be brought forward for redevelopment subject to planning consent, supporting the council’s growth agenda, delivering economic regeneration and employment to the city,' the council added last month. 'The redevelopment of this site could potentially generate business rate and/or council tax revenue for the council depending on the final proposed use.'
Government-appointed commissioners, overseeing the council’s financial recovery, also backed the sale, stating that the council requires 'significant capital receipts' to finance the costs of equal pay and previous budget deficits. 'Just under £1 billion in Exceptional Financial Support (EFS) has been agreed in principle by Ministry of Housing, Communities and Local Government,' they wrote. 'Even though it is hoped the final level of support will be lower, there remains a need for significant capital receipts to finance the EFS. The current level of asset sales is £363m, so considerable further sales are required.'
Coun Cotton confirmed earlier this year that the council had ditched the 'bankrupt Birmingham' tag after closing a £300 million budget gap.
