Sandwell Council has won a landmark ruling ordering the government to explain why it axed the Building Schools for the Future programme.
It comes more than a year after the council made a Freedom of Information request to find out why Sandwell's £125m fund to rebuild nine schools was scrapped.
The government has 28days to appeal the decision.
A spokesman for Birmingham City Council, which was singled out for criticism in Ofsted's report on child protection, has acknowledged that there is a long-standing problem:
The Chief Inspector at Ofsted has highlighted Birmingham as one of the worst councils for child protection.
Sir Michael Wilshaw said: "We've allowed failure to go and on and on in Birmingham for far too long.
"The stats are there to see, it points to endemic failure. This isn't good enough and children are at risk, now is the time for central government to do something about it and see if local government is working. If it's not working then I'm calling on central government to break Birmingham up."
Four Midlands councils are "inadequate" at caring for some of the most vulnerable children in society, a report has found.
The standard of child protection at the councils is "unacceptably poor", Ofsted has warned.
The local authorities criticised:
Bipin Patel, an IT Business Manager, based at The Public in West Brom has told ITV News Central he's disappointed that Sandwell Council are pulling funding for the arts centre. He says it is the ideal place for small businesses to operate from.
Leader of Sandwell Council Darren Cooper says he needs to get 'The Public' back on a firm financial footing - but wants to ensure the community side of the centre can keep going despite the decision to pull Arts Council funding.
Opening two years late, with contractors going into administration, and costs over-running by millions - today's announcement is the latest in a long line of problems faced by 'The Public'.
Wesley Smith takes a look back at its troubled past.
People at 'The Public' in West Bromwich expressed their sadness at the prospect it will close from December.
Many visiting today say it's well used facility by people in the town, and will only get busier now a new shopping centre has opened next door.
Sandwell Council agreed to pull funding from the Arts Council and end its contract, saying the running of the cinema and gallery space was too expensive for taxpayers.
The Arts Council says it's disappointed at Sandwell Council's decision to end its contract to run The Public arts centre in West Bromwich.
It's after councillors decided the running of the building was too costly, in a review over funding.
An Arts Council spokesperson said:**
Speaking about the decision to temporarily close controversial West Bromwich arts centre The Public from November, the leader of Sandwell Council said: