One of Britain's most senior civil servants warned that Birmingham had "flatlined" as he began a review into why the city is failing to reach its full potential.
The Trojan Horse affair, failing child protection services and Birmingham's massive financial liabilities have led central government to launch an inquiry into what's gone wrong in the city.
Sir Bob Kerslake, who was head of the civil service until July, has been tasked by Local Government Secretary Eric Pickles with leading a wide-ranging review into how the city is governed.
It was prompted partly by "Trojan Horse", when the council was accused of turning a blind eye to attempts by a group of school governors to impose a strict religious ethos on schools.
But Government Ministers are also concerned about Birmingham's inability to improve its child protection services, which were branded a "national disgrace" by the head of inspectors Ofsted last year, and about its poor finances, caused partly by the need to pay compensation to thousands of female workers who were paid less than men for similar work.
Sir Bob, currently Permanent Secretary for the Department for Communities and Local Government, said there was a belief Birmingham could be more successful than it is.
He said: "Trojan Horse raised issues around the wider governance of Birmingham as a council. And I guess those contributed to issues that had been around for a while around Birmingham.
"Birmingham is a truly great city. I love the city and have done for a long time. And equally, you can see some really big and important things that have happened in Birmingham, such as the work that's been done on the economy and the city centre.
"But I think, to be very direct about it, there's quite a widespread view that Birmingham over a period of 10 or maybe even 20 years has flatlined. It hasn't matched its potential. And the question is, why?
"So the purpose of the review is to go beyond the issues of Trojan Horse to look at the governance, the way in which leadership happens, the way the council is run. To look at what could change."
He is to lead a team of experts, including council leaders and officers from other parts of the country, to speak about the challenges Birmingham faces with city councillors, community groups and other local bodies such as health services and the chambers of commerce.
Sir Bob will then present a report with recommendations to Mr Pickles by the end of the year. Options he might consider include looking at whether Birmingham City Council should be broken up into smaller councils.
Council leader Sir Albert Bore is supporting the review and will be consulted throughout the inquiry.
The review panel will hold public meetings and a website will be set up allowing people to submit their own evidence.
Follow the review's progress on Twitter at @KerslakeReview .
