Britain's biggest authority, Birmingham City Council, has been thrown into turmoil after an internal Labour Party review concluded the National Executive Council (NEC) should choose a new leader.

The MJ has obtained a copy of the final report of the Birmingham Campaign Improvement Board (CIB) – a hit squad sent in to review the party's local performance amid concerns over the council's leadership and governance.

The CIB reported back today (16 May) and has recommended that the NEC will interview candidates for council leader under a new party electoral structure to be introduced immediately – effectively signalling the end of the current under-fire leader, Cllr Ian Ward. It follows concerns among local Labour MPs, including Shabana Mahmood, Labour's national campaign co-ordinator and MP for Birmingham Ladywood.

The MJ understands that Cllr Ward could be interviewed as part of Labour's new process, but local insiders described his chances of remaining in post as ‘now bleak'.

In total, the CIB makes more than 60 recommendations – covering everything from Birmingham's ‘systemic challenges' and ‘service delivery', to campaigning, electoral practices and dealing with ‘misogyny, racism and harassment' across the wider group.

Most notably, the CIB report states: ‘We propose that there should be annual elections for the leader, deputy leader and group officers, with the first elections under this arrangement to take place this year.

‘However, it is clear to CIB that Birmingham Labour Group cannot run its AGM in the manner prescribed by the party's rules. As such we propose that a panel of NEC and appointed REC members from outside the region, interview and appoint leader, deputy leader, and group officers.'

But the national Labour Party's move has gone down like a lead balloon among local insiders. Furious officials questioned whether the central party should be allowed to ‘ride roughshod' over a democratically elected local leader.

‘There is a lot fury and discontent, locally,' one source said. ‘Irrespective of Cllr Ward's performance – and he has his supporters, too – there is a feeling that this is the central Labour Party intervening to say "national politicians are now in charge of Britain's biggest council."

‘There are wider implications for the local government sector here, around accountability and central oversight.'