Lawyers for several care home owners want a judicial review of a policy adopted by Birmingham City Council which they claim amounts to a "boycott" of their businesses.

The authority is refusing to place elderly people in homes that have drawn up new contracts, based on the rates which the council has already stated are "fair and economic".

The legal challenge at the High Court in London is being mounted by the Birmingham Care Consortium (BCC), which includes seven home owners, five elderly residents and four of their relatives.

If the council continues with disastrous policies towards the elderly, most of the private homes in the city will be forced to close

BCC chairman Alan Pearce

The BCC is also seeking an injunction stopping the city's social services department from refusing to place people in homes owned by its members.

A spokesman for the BCC said it had offered to accept a compromise fee structure until rates recommended by the independent Joseph Rowntree Trust are introduced in April 2003.

The five elderly plaintiffs allege the council's stance on limiting their choice of home is endangering their well-being under the European Convention on Human Rights.

Their lawyers are also claiming the lives of some elderly people are being put at risk by the lack of choice.

'Disastrous policies

BCC chairman Alan Pearce said: "We are backing this court action in order to provide an adequate supply of good quality care for the elderly in our society.

"If the council continues with its disastrous policies towards the frail elderly, most of the private homes in the city will be forced to close by their bankers.

"We must have a fair and economic fee structure to encourage a strong, vibrant industry.

"We decided to seek leave for a judicial review following the council's decision to boycott our members which clearly denies elderly people their choice of home."