Birmingham considers NEC sell off to fund equal pay claims

15 Jan 14
Birmingham City Council has confirmed it is considering the sale of the National Exhibition Centre as part of an asset disposal programme intended to meet the cost of equal pay claims

By Richard Johnstone | 15 January 2014

Birmingham City Council has confirmed it is considering the sale of the National Exhibition Centre as part of an asset disposal programme intended to meet the cost of equal pay claims.

The council said today a review of the authority’s assets was being undertaken in the context of the budget challenges it faced, which include meeting equal pay liabilities.

Compensation claims against the council, which is the largest in the UK, are set to total at least £757m after the Supreme Court ruled that former employees could pursue equal pay claims. 

In 2012, the government said it would allow town halls to use receipts from asset sales to tackle historic pay inequalities. 

A Birmingham City Council spokeswoman said it had disposed of assets to the value of £76m over the past two years. 

This programme had so far largely consisted of surplus land and office accommodation plus sales of council housing, but would now include a review of commercial and retail holdings and car parks, as well as property.

‘These reviews should be seen in the context of the wider budget challenges faced by local authorities including the financing of equal pay liabilities,’ she added.

‘The current review of the NEC group however is prompted by the need to invest and diversify the business to enable its amazing success to be a platform for international expansion and growth.’

Chris Benson, a partner at law firm Leigh Day who specialises in employment and discrimination claims, insisted there were a number of ways Birmingham could have avoided owing the debts. Leigh Day represents more than 5,000 women who are taking equal pay claims against authorities.

‘They could have settled with the workers they underpaid instead of paying London lawyers to defend the indefensible for two years,’ Benson said. 

‘They could, of course, have paid the women fairly at the time, as other councils did. Instead they are now left with so much to pay as they owe these women many years of wages, with interest on top.’

Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top