In a move to strategically manage its finances, Birmingham City Council is exploring the potential sale of assets from its £2.4bn property portfolio. This initiative is part of a broader plan to bridge an estimated £300m budget shortfall projected for the next two years.

The council, currently under government intervention, is under pressure to formulate a robust plan to address this financial gap. The shortfall, initially identified at £87.4m for the financial year 2023/24, is expected to increase to £164.8m in the subsequent year. This situation has necessitated a closer examination of the council’s extensive property assets.

According to a recent report, the council’s property holdings, excluding residential homes, infrastructure, and schools, have a substantial value and generate significant annual revenue. The portfolio comprises approximately 6,500 assets, underlining its potential as a key financial resource.

Fiona Greenway, Birmingham’s interim director of finance, emphasised the importance of reviewing and assessing the council’s capital programme and assets. The aim is to generate capital receipts that would contribute to financial recovery. These funds are expected to support various council needs, including the application for a capitalisation direction, equal pay liabilities, redundancy scheme costs, and balancing the budget for the 2024/25 financial year.

The council is also considering additional measures, such as comprehensive reviews of both statutory and non-statutory services and potential asset disposals. Similar asset disposal programmes have been successfully implemented in other councils under government intervention, demonstrating their effectiveness in generating capital.

In addition to asset management, Birmingham City Council is contemplating seeking exceptional financial support from the government. This could include requests to increase council tax beyond the referendum limit and a formal application for a capitalisation direction.

These strategies and reports will be presented for further discussion and decision-making at the council’s Cabinet meeting. The focus remains on harnessing the value of the council’s property assets to navigate through the current financial challenges, aiming to ensure a stable and sustainable fiscal future for Birmingham.