After receiving equal pay claims reaching up to £760 million ($956 million), Britain’s second-largest city reportedly declared bankruptcy and shut down all non-essential spending.
Birmingham City Council said it has a space of£ 87 million ($ 109 million) in the current fiscal time and also faces a “ implicit liability relating to equal pay claims in the region of£ 650 million to£ 760 million.”
Sharon Thompson, deputy leader of the council said it faces “longstanding issues, including the council’s major equal pay liability enterprises”.
Thompson also criticized the ruling Conservative Party, saying Birmingham “ had £ 1 billion of backing taken down by consecutive Conservative governments.”
The Labour- run administration representing Birmingham issued a so- called 114 notice, putting a stop to all but essential spending and getting the rearmost in a string of councils to plunge into fiscal torture.
Sharon added while the council is facing significant challenges, the megacity is veritably important still open for business.
Also read: Apple declares a launch event at September 12th for the acclaimed iPhone 15
Meanwhile, a prophet for UK Prime Minister Rishi Sunak said the responsibility for effective budget operation lies on tagged councils.
Birmingham City Council’s ruin reason:
One of the crucial reasons behind the megacity going void is the equal pay claim. The megacity’s authority said it has been forced to pay out after a Supreme Court ruling in 2012 sided with a group of largely womanish workers who had missed out on lagniappes that were given to staff in traditionally manly- dominated places at the council.
It has formerly paid out further than £ 1 billion on the equal- pay claim and was also hit with costs from a new IT system.
The council also criticized “ unknown fiscal challenges,” including affectation, rising demand for adult social care, and “ dramatic reductions” in income from business levies.
A Section 114 notice is issued by a council when it believes its income won’t be suitable to meet spending.
It’s extensively reported as effective ruin for a council, meaning it cannot make new spending commitments. It frequently leads to a new budget with reduced expenditure.
Birmingham is a multi-cultural megacity in Central England that also hosted last time’s Commonwealth Games. It’s listed to hold the 2026 European Athletics Championship.
