Birmingham City Council has voted to review its financial ties to Israel, despite strong condemnation from UK-based Jewish groups.
On Tuesday, a majority of the council voted to pass the motion, which seeks to review investments held by the West Midlands Pension Fund, banking arrangements and other financial ties, including the possibility of excluding or divesting from companies connected to Israel. The motion also urges stronger ethical investment standards amid concerns over Israel’s actions in Gaza.
Videos from the council meeting show members erupting into applause and chanting ‘Free Palestine.'
Katie Lam, the shadow communities secretary, told The Telegraph: “The fact that Birmingham City Council is focused on the Middle East, rather than on dealing with the city’s actual problems, is a complete disgrace.”
“This is Europe’s largest council. In just the past few years, people in Birmingham have suffered nearly two years of bin strikes, and watched their council go bankrupt.
“Yet, in an effort to stoke up group-based grievances, the Greens and their Lib Dem enablers are spending their time grandstanding about foreign affairs.”
Birmingham is considered Europe’s largest local authority. It serves approximately 1.2 million people. It is one of seven metropolitan councils participating in the West Midlands Pension Fund, which is administered by Wolverhampton City Council. The fund provides pension benefits to more than 360,000 members, including current and former public-sector employees, and holds approximately £21 billion in assets.
Lawyers warn of legal limits
Ahead of the vote, UK Lawyers for Israel (UKLFI) called for the motion to be withdrawn or deferred until councilors receive proper legal and equality advice, requesting that its communication be circulated to all councilors before the debate.
In the letter, UKLFI pointed out that section 17 of the Local Government Act 1988 restricts politically motivated procurement boycotts, while the Procurement Act 2023 prevents suppliers from being excluded simply because they conduct business in or with an occupied territory.
UKLFI also noted that the West Midlands Pension Fund must make investment decisions in the financial interests of its members rather than pursue political objectives, pointing out that government guidance prohibits the exclusion of investments in particular countries or companies.
A UKLFI spokesperson said, “Birmingham City Council cannot lawfully use public contracts, pension funds, and banking arrangements to pursue political campaigns.
“It is particularly disturbing that a motion which could increase hostility toward Jewish residents is being presented as having no equality implications. Councilors must put the law, the interests of pension fund members, and community relations ahead of performative political gestures.”
Local leadership in Birmingham has already faced friction over Israel-related policies. In October 2026, local Labour MPs including Al Carns, Jess Phillips, and Preet Kaur Gill publicly urged Liberal Democrat council leader Roger Harmer to end his power-sharing agreement with the Green Party following a controversial policy motion passed at the national Green Party conference in September 2026 when a policy stating that Zionism is racism and calling for Israel to be replaced by a single Palestinian state was adopted.
Alex Carson contributed to this report.