Birmingham City Council has voted to review its financial links with companies connected to Israel amid growing pressure to ensure public money is not implicated in violations of international law.
Councillors cheered and shouted “Free Palestine” after a majority voted in favour of a motion calling for greater scrutiny of the council’s investments, banking arrangements, procurement and commercial dealings.
Photographs of Palestinian children killed in Gaza were held up during the debate, which saw councillors approve the main motion alongside three amendments.
The motion was proposed by Better Birmingham Independent councillors Nosheen Khalid, who represents Alum Rock, and Jamil Khan, who represents Sparkbrook and Balsall Heath East.
It calls for an examination of the council’s financial relationships with organisations potentially linked to serious violations of international law, including consideration of investments held by the West Midlands Pension Fund.
Although Israel’s actions in Gaza were a central motivation, the agreed motion also covers other countries and conflicts, including Sudan, Congo, Ukraine and the United Arab Emirates.
Muslim councillors demand financial accountability
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Introducing the motion, Cllr Khalid said Birmingham had a responsibility to examine whether public money was connected to companies implicated in serious abuses.
“We are asking Birmingham City Council to examine its investments, banking relationships, procurement and commercial dealings to establish whether public money is connected to companies alleged by credible sources to be involved in activities linked to serious breaches of international law.”
She said the suffering of Palestinians had made the issue particularly urgent.
“We are discussing Palestine at a time when the suffering of its people has been witnessed across the world. Families have been displaced. Homes have been destroyed. Children have been killed. Entire communities have endured devastation and loss on a scale that is difficult to comprehend.”
Khalid argued that financial decisions could not be separated from their human consequences.
“Behind every legal ruling, every investment portfolio and every financial decision are human beings whose lives have been turned upside down, and I cannot ignore that reality.”
And Cllr Harris Khaliq said: “This money, Birmingham residents’ money, will not be spent in illegal settlements… within six months of being councillors, we’ve made it clear that if you support genocide, you support Zionism, there is no place for Birmingham money being invested there. And that’s where history was made. And this is the bare minimum we can do for those Palestinian civilians.”
The motion calls for the council to examine whether its banking, procurement and investment arrangements are consistent with ethical standards and its responsibilities under the law.
It also asks the West Midlands Pension Fund to consider reviewing its investments, including potential options for excluding or divesting from companies linked to abuses.
However, the vote does not constitute an immediate boycott of Israel or an instruction to sell existing investments. Any subsequent changes would require further consideration and compliance with relevant legal obligations.
Pro-Israel groups condemn decision
The vote prompted criticism from pro-Israel organisations, including UK Lawyers for Israel and the Campaign Against Antisemitism, which warned that implementing a boycott could breach legal restrictions.
UK Lawyers for Israel had urged the council to withdraw or postpone the debate, but Birmingham’s monitoring officer allowed the motion to proceed.
Birmingham Jewish entrepreneur and campaigner Simone Schehtman accused councillors of damaging community cohesion.
“When the local council of Britain’s second biggest city supports boycotts against the world’s only Jewish state, it does so to the detriment of community cohesion,” she said.
She argued that Jewish residents could interpret the decision as evidence that councillors were prioritising a foreign conflict over their safety and local concerns.
Conservative MP Nick Timothy also attacked the vote, describing it as “disgusting sectarianism”.
“Is this Ramallah? Gaza City? No, it’s Birmingham,” he wrote on social media, accusing councillors of neglecting problems including uncollected rubbish and economic inactivity.
Reform UK raises legal objections
Reform UK’s Birmingham council group voted against the motion, arguing that councillors should concentrate on local services rather than international politics.
Its leader, Cllr Jex Parkin, said the decision raised serious legal questions about politically motivated procurement boycotts and the responsibilities of pension fund trustees.
“Birmingham City Council is responsible for running Birmingham, not conducting British foreign policy,” he said.
“At a time when the council should be bringing communities together, it risks creating further division.”
Reform has asked the council’s monitoring officer to explain the legal advice underpinning the decision and how the resolution could be implemented without breaching procurement and pension regulations.
Despite the opposition, the council’s decision represents a significant political endorsement of examining how Birmingham’s public finances may be connected to Israel and other states accused of serious human rights violations.
The next stage will determine whether the review leads to concrete changes in the council’s financial relationships.
