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Birmingham votes to approve recovery plan

Birmingham City Council has voted to approve spending control measures, as well as endorsing a “financial recovery plan” that is already under way.

The vote came six days after the levelling up secretary, Michael Gove, announced commissioners will be sent to run the council.

Gove said commissioners would be parachuted into the stricken authority to preside over decision-making, with the selling of council-owned assets, job cuts and a rise in council tax all anticipated.

The council, which serves more than 1m people, has a budget shortfall of £87m for the current financial year, projected to rise to £165m in 2024-25.

It is facing a £760m bill for equal pay claims, on top of £1bn it has already paid out in equal pay compensation over the past decade, and major problems with a new IT system are expected to cost £100m to fix.

The Guardian

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