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Birmingham City Council effectively declares bankruptcy


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Birmingham City Council has effectively declared bankruptcy after being hit with a £760m bill to settle equal pay claims.

The council said it had issued a section 114 notice, confirming that all new spending, with the exception of protecting vulnerable people and statutory services, must stop immediately.

In a statement declaring itself in financial distress, the local authority said it 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".

The Labour-run council is the largest local authority in Europe, comprising 101 councillors (65 Labour, 22 Conservative, 12 Liberal Democrat and two Green).


"The local authority has an £87m hole in its budget this year and might have to spend up to £100m to fix a botched IT system." :hmm:

Edited by itsnotoutthere
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Birmingham is the first local councils to finally become bankrupt after years of Tory austerity:

The government promise of a “real-terms increase” in cash for struggling councils relies on local taxpayers footing the bill, as a new report reveals many face drastic spending cuts to avoid bankruptcy.

Councils across England have seen their “spending power” - the total amount they have to run services - drop from £55.2 billion in 2010/11 to £45.1 billion in 2018/19.

How Birmingham taxpayers are footing bill for austerity as councils face bankruptcy - Birmingham Live (birminghammail.co.uk)

The Tories destruction of Britain is just about complete: record NHS queues, record asylum claims, public buildings crumbling, food production at an all-time low, and Sunak is promising a cut in benefits to fund tax cuts before they had the ruins over to Labour next year.

What a record!

Edited by pellinore
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Following the collapse of Labour-run Birmingham, East Devon Tory MP Simon Jupp said: “If Labour can’t run a council, they can’t be trusted with our country.”

Claire Wright, his independent rival for the constituency at the December 2019, responded: “Imagine our MP’s shock when he realises Conservative-run Devon County Council is on the verge of bankruptcy.”

Six more councils fighting bankruptcy, including Bradford, Kent and Devon, local government leaders warn (msn.com)

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