Birmingham city council, the largest local authority in the country, has in effect declared itself bankrupt after issuing a section 114 notice signalling it cannot balance its budget without help.
In a statement published on Tuesday, the leader and deputy leader of the Labour-run council, John Cotton and Sharon Thompson, said the notice was a necessary step as we seek to get our city back on a sound financial footing.
They attributed the councils financial crisis to longstanding issues including equal pay liability claims and complications from implementing a new IT system.
We implemented rigorous spending controls in July, and we have made a request to the Local Government Association for additional strategic support, the statement said.
A …
Read the full article at: https://www.theguardian.com/society/2023/sep/05/birmingham-city-council-financial-distress-budget-section-114