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Birmingham City Council
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Birmingham City Council

The UK's largest local authority by population, which issued a Section 114 notice in September 2023.

Birmingham City Council's Section 114 notice of September 2023 is still the benchmark for English council failure, cited again in 2026 as Nottingham filed its third notice and 36 councils relied on emergency government support.

Last refreshed: 7 October 2026 · Appears in 1 active topic

Key Question

How did the UK's biggest council go bankrupt?

Timeline for Birmingham City Council

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Background

Birmingham City Council is the UK's largest local authority by population, serving more than 1.1 million residents as a metropolitan borough council. In September 2023 it issued a Section 114 notice, the formal declaration that a council cannot balance its books, after equal pay liabilities of about £760m and a failed IT system exhausted its reserves. The IT failure was the overrunning implementation of an Oracle system.

The notice brought government intervention. Ministers appointed commissioners in October 2023, WHO took direct control of budget-setting and service cuts. Spending since has run under tight constraint, with asset sales to raise money.

Birmingham's case ended the idea that Section 114 notices were a theoretical last resort. Before 2023 only a handful of authorities had issued one. It remains the largest local government insolvency in UK history and the comparator for every council failure since, including Thurrock, whose losses of about £1.5bn from failed investments were weighed against Birmingham's ahead of the 7 May 2026 local elections. When Nottingham filed its third notice in March 2026 without a parallel commissioner appointment, the contrast with Birmingham was read as a sign of how central government grades a council's underlying position.

Common Questions
Why did Birmingham City Council go bankrupt?
Birmingham issued a Section 114 notice in September 2023 due to £760m in shortfalls, primarily from equal pay liabilities and an over-budget Oracle IT system.Source: background
What is a Section 114 notice UK council?
A Section 114 notice freezes all non-essential council spending when the chief finance officer determines the authority cannot balance its budget.Source: background
Is Birmingham City Council still under commissioners?
Yes. Government-appointed commissioners have controlled the council's financial decisions since October 2024.Source: background