Birmingham City Council is considering a major property disposal to settle a series of equal pay compensation claims the Birmingham Post reports.
Birmingham Town Hall
The council faces a bill of £757 million after losing its appeal against a court ruling that it must reimburse council workers for lower pay and loss of bonuses over a six year period prior to the claims. Despite borrowing £429 million – and a further £100 million loan due from central government – the council must find a way to meet the shortfall.
The city council is the largest landowner in Birmingham with property assets worth several billion. This portfolio includes the town hall, office buildings, shopping parades and an extensive number of retail properties in the sought after Jewellery Quarter.
A spokeswoman for the council acknowledged the scale of the equal pay settlements and explained that they have been in discussions about funding the payments over the course of this year and next year.
This includes greater flexibility in accounting, using capital receipts to meet payments and the additional £100 million loan from The Department for Communities and Local Government (DCLG).
In the longer term, she said, the council is still working on a funding strategy to meet its obligations. This includes the sale of shares in the NEC group and the proposed asset disposal. If this goes ahead it is certain to generate keen interest among businesses and commercial property investors.
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