UK

Birmingham City Council declares effective bankruptcy

Council says all new spending in the city, with the exception of statutory services, must stop immediately

Birmingham: “Birmingham City Council has issued a s.114 notice as part of the plans to meet the council’s financial liabilities relating to equal pay claims and an in-year financial gap within its budget which currently stands in the region of €101 million.” Picture: Getty

Birmingham City Council has declared itself in financial distress over multimillion-pound liabilities to settle equal pay claims.

In a statement on Tuesday, Europe’s largest local authority confirmed that it had issued the declaration that it cannot balance its books.

It said all new council spending in the city, with the exception of protecting vulnerable people and statutory services, must stop immediately.

A Birmingham City Council spokesperson said: “Birmingham City Council has issued a s.114 notice ...