 Birmingham City Council has declared itself bankrupt. Europe's largest local authority confirmed in a statement on Tuesday that it can no longer 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. The council said 'it does not have the resources' to fund its equal pay liability, and has an £87m gap in its current budget. The local authority – the largest in Europe – has issued a Section 114 notice preventing all but essential spending to protect core services (Picture: SWNS) A spokesperson for the Labour-run authority said the council had issued a Section 114 notice, which means a local authority has judged itself to be in financial distress and can no longer balance its budget. Sharon Thompson, deputy leader of Birmingham City Council, told councillors at a cabinet meeting on Tuesday morning that the notice was a 'necessary step as we seek to get our city back on sound financial footing'. She said: 'I want to stress that despite the significant challenges that we face, we will prioritise core services that our residents rely on in line with our values of supporting the most vulnerable in this city. 'Birmingham City Council faces longstanding issues, including the council's historic equal pay liability concerns and the implementation of the Oracle ERP system which have been compounded by the reality that Birmingham had £1 billion of funding taken away by successive Conservative governments. 'Local government is facing a perfect storm. Like councils across the country, it is clear that this council faces unprecedented financial challenges, from huge increases in adult social care demand and dramatic reductions in business rates incomes, to the impact of rampant inflation. 'Whilst the council is facing significant challenges, the city is very much still open for business and we'r){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
Birmingham City Council has declared itself bankrupt.
Europe’s largest local authority confirmed in a statement on Tuesday that it can no longer 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.
The council said ‘it does not have the resources’ to fund its equal pay liability, and has an £87m gap in its current budget.