Newswire

From September 2010 the OMFIF Newswire was integrated into the bi weekly OMFIF Commentary and complimented in late December 2010 by the OMFIF blog.

UK city explores asset sales to Middle East sovereign funds

The UK’s second-largest city, Birmingham, has reportedly been in talks with sovereign funds in Abu Dhabi and other Middle Eastern countries about a possible sale of its airport and other city assets.

Although city officials quickly backtracked, Reuters reported that city council leader Mike Whitby said the city would allow the sovereign funds “to be in partnership” with landmarks like the Symphony Hall and the National Exhibition Centre, as well as the airport.

The reports are symptomatic of the gaping budget holes faced by British local authorities, even as the national coalition of Conservatives and Liberal Democrats announced a new scheme to authorise local authority borrowing for infrastructure projects.

Another option raised in some reports was the possibility of Middle Eastern funds investing in new projects that the city is mounting, such Kuwaiti interest in the ‘Big City Plan’ to renovate Birmingham’s central train station and build a new library.

Birmingham faces spending cuts of £330m ($517m) over the next four years in the wake of the national government’s austerity plans.

Labour politicians accused the city’s Conservative-Liberal Democrat government of floating a trial balloon with the report to see if public opinion would countenance the sale of city assets to Middle Eastern interests.

At the Liberal Democrat annual conference in Liverpool this week, UK Deputy Prime Minister Nick Clegg said big city councils would be allowed to borrow funds for infrastructure projects against future increases in business tax revenue that will result from the improvements.

 

Issue Articles

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Issue No: 32 - 22 September 2010

Issue Select: 22 Sep 201015 Sep 201008 Sep 201025 Aug 201011 Aug 201028 Jul 201014 Jul 201030 Jun 201023 Jun 201016 Jun 201009 Jun 201002 Jun 201026 May 201019 May 201012 May 201005 May 201028 Apr 201021 Apr 201014 Apr 201007 Apr 201031 Mar 201024 Mar 201017 Mar 201010 Mar 201003 Mar 201024 Feb 201017 Feb 201010 Feb 201003 Feb 201027 Jan 201020 Jan 201013 Jan 2010

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UK city explores asset sales to Middle East sovereign funds

The UK’s second-largest city, Birmingham, has reportedly been in talks with sovereign funds in Abu Dhabi and other Middle Eastern countries about a possible sale of its airport and other city assets.