City still booming around ‘bankrupt’ Birmingham council

After Birmingham City Council declared it was effectively bankrupt, the city battled against bad press and an uncertain financial outlook.

But with figures showing the city’s tourism and economy continues to boom, the BBC spoke to Brummies – and adopted Brummies – about why the future still looks bright.

The gluhwein is flowing once again and the festive lights are twinkling – Birmingham’s German Market returned this week for almost two months of festivities that will attract more than 5.5m visitors hoping for a bratwurst and a beer.

The market was firmly on, he told the BBC, and he and the rest of the stallholders were making their annual trip to a city many of them have fallen in love with.

“My heart belongs in Birmingham and I have celebrated Christmas with the people of Birmingham for so many years now,” Mr Stroscher said.

With an economic value of £350m, it’s a love affair that benefits the city greatly.

Despite the struggles at the council, which now has government-appointed commissioners overseeing it, Birmingham is thriving in many areas.

The largest urban economy outside London, it recorded an economic output of £31.9bn in 2021.

The West Midlands Growth Company found spending by visitors to the region in 2022 rose by £4bn – welcoming 141.2m visitors – with the Birmingham 2022 Commonwealth Games credited as part of the bounce.

While financial experts have since said it was a mistake for the council to host the Games, it contributed at least £870m to the UK economy and put the city on the global stage.

“The Commonwealth Games were incredible – and the buzz around the city,” said Kate Jones, an artist from Adelaide.

She came to Birmingham, where her father is from, for a year and stayed for seven.

“I just love the city’s grittiness and people,” said Kate, who has made a living from drawing some of Birmingham’s most famous landmarks and adding her signature botanical illustrations.

One of her most popular prints is of Ozzy the mechanical bull and showpiece of the Commonwealth Games, by people keen to preserve the memory.

“The Games and associated business and tourism programme helped stimulate the highest levels of foreign investment ever recorded in Birmingham, as well as record levels of leisure tourism and new, major events,” said Neil Rami, chief executive of the West Midlands Growth Company.

“Birmingham’s strong economic fundamentals have not changed. A wide range of economic indicators show a city that is not only resilient, but flourishing.

“People I have met, people who tried us out say, ‘Wow, its the greatest city’,” said Julia Robinson, manager of Southside Business Improvement District, which covers the city’s Gay Village and Chinatown.

“The Commonwealth Games brought in people from all over the world, a lot of them fell in love with us – it is impossible not to.”

The city’s hospitality sector also continues to thrive. In 2022, Birmingham was named the UK’s “most vibrant city”, thanks to its pubs, bars and restaurants pushing its post-Covid revival.

Christina Kruzewski, group sales and events manager at Orelle, a French restaurant on the 24th floor of the 103 Colmore Row building, with panoramic views around Birmingham.

Since opening in October 2022, it has been fully booked on Thursdays, Fridays and Saturdays.

“I always say that they need to visit Birmingham before make opinion, I think it is one of the greenest cities in the whole of the UK, we have loads of parks, the most canals, we’re known for our jewellery,” Ms Kruzewski continued.

“The history alone is something to come for. And we have the most incredible food, I think the best outside of London.”

Elsewhere, construction has started on Digbeth Loc Studios, set up by Peaky Blinders creator and Birmingham ambassador Steven Knight, inside which, UB40 plan to occupy music studio space.

Speaking after the council stopped all but essential spending, Conservative West Midlands Mayor Andy Street said: “Just because the city council is in this position, does not suddenly mean that Birmingham is failing – indeed, far from it.

“I would urge anyone looking to back Birmingham to reflect on our progress, and consider our world-class institutions, our innovative businesses and the record amounts of investment being made.”

The city council’s Labour leader, John Cotton, also insists that while “times are tough”, Birmingham is still “open for business”.

The authority describes Birmingham as the youngest city in Europe – with under-25s accounting for nearly 40 per cent of the population.

Jaspreet Singh, a 29-year-old international PHD student at Birmingham City University, said Birmingham was the place he wanted to build his future.

“I always say I am born in Punjab but I am made in Birmingham,” he said.

“The city turned me from a simple villager to a global thinker – it has inspired me.

“It is very rich in terms of art, culture and diversity and it has shown me that the world is an amazing place.”