Birmingham City Council declared itself effectively bankrupt after being hit with a £760m bill to settle equal pay claims.
John Cotton, leader of Birmingham City Council, welcomed the announcement and said officials will work with the government and the commissioners to get it back on"a sound financial footing".
Birmingham City Council has been grappling with an equal pay liability, which has grown over several years and is now estimated to stand at around £1bn. Asked if the commissioners' powers would extend to decisions to raise council tax and sell assets, he said this has"sadly been the case in the past with local authorities that have failed", like Croydon and like Slough.
Mr Gove went on to say that although he believes strongly in local government,"when failures of local government occur, we must act".
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