Europe’s largest local authority said all new spending, with the exception of protecting vulnerable people and statutory services, must stop.
Birmingham City Council has declared itself in financial distress over multimillion-pound liabilities to settle equal pay claims.
It said all new council spending in the city, with the exception of protecting vulnerable people and statutory services, must stop immediately. “In June, the council announced it had a potential liability relating to equal pay claims in the region of £650m to £760m, with an ongoing liability accruing at a rate of £5m to £14m per month.
The spokesperson said: “The council will tighten the spend controls already in place and put them in the hands of the section 151 officer to ensure there is complete grip.
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Birmingham City Council declares financial distressThe authority issues a notice that means it will only be able to spend on essential services.
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Birmingham City Council effectively declares bankruptcy after being hit by £760m billBirmingham City Council has effectively declared bankruptcy after being hit with a £760m bill to settle equal pay claims.
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