Birmingham City Council 'effectively bankrupt' – BBC

Birmingham City Council has declared itself effectively bankrupt.

The local authority – the largest in Europe – has issued a Section 114 notice preventing all but essential spending to protect core services.

The pressures have been linked to a 760m bill to settle equal pay claims.

In a joint statement, the leader and deputy leader of the Labour authority said the notice was a “necessary step as we seek to get our city back on a sound financial footing”.

Such a notice, issued in the past by councils including Croydon and Thurrock, means a local authority has judged itself to be in financial distress and can no longer balance its budget.

Opposition leader, Robert Alden, Conservative, said the c…

Read the full article at: https://www.bbc.com/news/uk-england-birmingham-66715441