Government Statement
Today I am updating the House on the statutory intervention at Birmingham city council and the ongoing issues affecting its waste service. The government pledged to fix local governance foundations, aiming for well-functioning councils providing essential services. Commissioners have been supporting Birmingham's recovery for 18 months. Despite progress in addressing equal pay issues and governance improvements, challenges remain due to substantial risks on governance, financial management, and service delivery. The industrial action involving waste services causes significant disruption; the government supports the council by increasing core spending power up to 9.8%, or £131 million, including a one-off recovery grant of £39.3 million. The situation has escalated into a major incident due to public health risks for vulnerable residents. While ministers cannot legally intervene in industrial action, they will support local leaders and have put in place an exceptional financial support agreement worth £1.24 billion. We encourage all parties to resolve the dispute sustainably without future liabilities. Practices in waste services led to a large equal pay crisis costing over £1 billion; reforms are necessary for sustainable service delivery. The government remains committed to partnership with Birmingham, supporting economic growth and regeneration opportunities.