Hughes was a key part of the 2002 play-off winning side at St Andrews under Steve Bruce, also playing in the agonising 5-4 penalty loss to Liverpool in the 2001 Worthington Cup Final.
The 38-year-old spent seven years with the Blues, making over 250 appearances, before spending time with Charlton Athletic and Hull City, whilst now rounding off his career with non-league Scarborough Athletic.
Having been part of one of the Blues most successful squads in recent history, Hughes is keen to see his former club return to their past glories, but he feels as if one thing is missing from the set-up at St Andrews to guarantee success - stability.
He told VitalFootball: “For the size of the club, it is sad really.
“They massively need stability, last season we survived by the skin of our teeth and this season has been really topsy turvy too.”
The Blues sit near the tail-end of the Championship table, with just 11 points from 11 games leaving them four points clear of the relegation places. Lee Clark’s team host Bolton this weekend, looking to extend their run of undefeated games to three with a result against the Championship bottom club, but for a club of their size, Hughes believes that the Blues should be doing a lot more than they are currently achieving.
One way Birmingham could up their fortunes would be through a board takeover - something that was rumoured to be happening over the summer. Hughes believes that the arrival of a man who understands the foundations of the club could be key in securing a return to the top flight.
The midfielder added: “There was talk a while back that Jasper Carrott had a consortium interested in the club.
“He`d do a great job if he took charge because he understands the fans and the tradition of the club and he is loved.”