FAQs — published 7 September 2023
On 5 September 2023, Birmingham City Council issued a section 114 (s.114) notice.
What is a section 114 notice?
Councils are required by law to have balanced budgets.
If a council cannot find a way to finance its budget, then a s.114 notice must be issued.
The issuing of a s.114 notice bans all new spending with the exception of protecting:
- vulnerable people
- statutory services
- pre-existing commitments
Why has the council issued a section 114 notice?
Our Section 151 Officer issued a s.114 notice because we cannot balance our budget for the next financial year (2024 to 2025), which we must do by law.
A s.114 notice will only allow essential spending, which will make sure we can continue providing vital services to our most vulnerable residents.
What does the section 114 notice mean for Birmingham?
It means we have to stop spending, and we cannot enter into new agreements requiring a cost.
However, we can still spend money on:
- existing staff and payroll costs
- goods and services which have already been received
- delivering our statutory services at the minimum possible level
- safeguarding our vulnerable residents
- contractual commitments
- ring-fenced grants
- improving our services to reduce overall costs
How will the section 114 notice affect council services?
There will be no disruption to essential services.
We have issued the s.114 notice to make sure:
- we take action to balance our budget
- our essential services are protected
I am paid by the council. Will I still be paid, and will my salary and deductions be processed as normal?
Yes, all salaries and wages will be paid as normal and at the normal time.
Pensions are paid by pension funds external to the council and will not be affected.
I was given confirmation that I will receive a grant from the council. Will I still receive it?
All existing grant agreements will be honoured.
Future grant agreements will be reviewed using the essential spend criteria that the council is temporarily working under.
I receive direct payments. Will these be affected?
Agreements and care packages will continue to be paid.
We have given the council money for a particular purpose or to act as an accountable body. How will this be affected?
Examples of the above include:
- NHS pooled budgets
- grants for specific reasons
- deposited money with the council
All money will be unaffected if it is:
- held by the council on behalf of other bodies
- deposited under treasury arrangements to the council
- under an accountable body agreement
Will my Council Tax go up?
Council Tax is set in the annual council budget, which is finalised next year, and no decisions have been made yet.
Page last updated: 7 September 2023
