Birmingham City Council is one of Europe’s largest local authorities
BERTRAND LANGLOIS
RECASTS throughout, ADDS quotes, background, statistics
Local government bodies on Tuesday warned that more councils across the UK could declare themselves in financial dire straits, after the country’s second biggest city said it could not balance its books.
Birmingham City Council in central England said it had issued a Section 114 Notice under the Local Government Finance Act 1988, effectively declaring itself insolvent.
The statutory trigger blocks spending on all but essential services, and forces councillors to come up with an action plan within 21 days to tackle the shortfall.
Leaders of the Labour-controlled council — one of Europ…
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