 An inquiry has been launched into cash-strapped Birmingham City Council after it effectively declared itself bankrupt. Communities secretary Michael Gove told MPs today of plans to appoint commissioners to take over the authority and figure out what went wrong. He said the council is 'failing to comply with its best value duty' after it issued a section 114 notice at the beginning of September, which means it believes it can no longer balance its budget. In a statement to the Commons, Mr Gove said: 'I judge that the scale and nature of the failings at the council, its precarious financial situation and its failure to provide sufficient assurance to government that it is taking adequate action to address these issues are all highly concerning. 'I acknowledge the council is working with the Local Government Association on its own proposals on improvement and I've met with the leader of the council to hear his plans. 'But, in accordance with the legislation, I have now informed the council that I am minded to implement the package that I have set out today to protect the interests and services of the people of Birmingham.' He has also given the council five working days to make representations on his proposals. Communities secretary Michael Gove said the council is 'failing to comply with its best value duty' (Picture: SWNS) The commissioners would be able to exercise functions on behalf of the council, such as financial governance. The council would need to prepare and agree on an improvement plan within six months. Mr Gove said an inquiry would look at the 'more fundamental questions around how Birmingham got to this position'. Mr Gove added: 'It is important that we all get to the bottom of how we found ourselves in this position and that is why as well as sending in commissioners. 'I'm also making it clear that we need a local inquiry which can look at all of the deep){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
An inquiry has been launched into cash-strapped Birmingham City Council after it effectively declared itself bankrupt.
Communities secretary Michael Gove told MPs today of plans to appoint commissioners to take over the authority and figure out what went wrong.
He said the council is ‘failing to comply with its best value duty’ after it issued a section 114 notice at the beginning of September, which means it believes it can no longer balance its budget.
In a statement to the Commons, Mr Gove said: ‘I judge that the scale and nature of the failings at the council, its precarious financial situation and its failure to provide sufficient assurance to government that it is taking adequate action to address these issues are all highly concerning.