Gove sets out plans to intervene in Birmingham in “minded to” letter

Levelling Up Secretary Michael Gove has announced he is "minded to" intervene and send commissioners to Birmingham City Council following the issuance of its section 114 notice earlier this month.

Gove also called for a local inquiry to take place and gave the local authority five days to make representations to the Government in a letter setting out his plans for the proposed intervention.

Under the proposed plans, commissioners will have control over all functions associated with governance and strategic decision-making and its functions associated with financial governance and scrutiny of strategic financial decision-making.

In addition, commissioners will have the power to dismiss statutory officers and will be able to define the officer structure of the council's senior positions, as well as recruit new officers themselves.

Commissioners' powers will also extend to control of the council's operating model and the design of its services.

Finally, the document says commissioners will control all functions pertaining to the development, oversight and operation of an enhanced performance management framework for officers holding senior positions.

Birmingham City Council issued its section 114 notice in the face of backdated equal pay liability, currently estimated by the council as being up to £760m.

The council is also struggling with an in-year budget deficit that includes ballooning costs of implementing an IT system.

In the letter, Gove also set out what he wishes Birmingham to do in the face of its financial situation. This includes the preparation of an improvement plan.

This plan would set out steps for "continuous improvement and restore public trust across all the Authority's functions with a particular focus on housing, waste, finance, HR, governance and corporate services; to the satisfaction of the Commissioners," the letter said.

He also called on the local authority to review the provision and operation of corporate services within the first 12 months. The review would include legal, internal audit, risk management, HR, IT and systems, procurement and the PMO.

Birmingham will be required to report to the commissioners on the delivery of the improvement plan at six monthly intervals, or at such intervals as commissioners may direct, under the plans.

The proposed local inquiry could look at the fundamental questions about how the issues facing Birmingham have developed and would examine the council's ongoing management of issues identified in Lord Bob Kerslake's review of the authority in 2014 and the non-statutory intervention afterwards.

Max Caller CBE – who has led a series of high-profile best-value inspections and who was looking to step back from public life – has been named as the preferred candidate to lead the intervention.

Commenting on the proposals, Michael Gove said: "Birmingham Council's record is of ineffective, inefficient and unaccountable Government. It is failing in its basic duties.

"Where local leaders fail, it is residents who are let down. This cannot go on.

"I can announce that I am today writing to the council to set out my proposal to intervene and appoint commissioners, and that I intend to launch a local inquiry.

"I do not take these decisions lightly, but we must protect the interests of residents and taxpayers of Birmingham and provide assurance to the sector."

Adam Carey