Birmingham City Council has successfully declared chapter after being hit with a £760m invoice to settle equal pay claims.
The council mentioned it had issued a piece 114 discover, confirming that each one new spending, aside from defending weak individuals and statutory providers, should cease instantly.
The Labour-run council is the most important native authority in Europe, comprising 101 councillors (65 Labour, 22 Conservative, 12 Liberal Democrat and two Green).
In a press release declaring itself in monetary misery, the native authority mentioned: “Birmingham City Council has issued a s.114 notice as part of the plans to meet the council’s financial liabilities relating to equal pay claims and an in-year financial gap within its budget which currently stands in the region of £87m.
“In June, the council introduced it had a possible legal responsibility referring to equal pay claims within the area of £650m to £760m, with an ongoing legal responsibility accruing at a price of £5m to £14m per thirty days.
“The council is still in a position where it must fund the equal pay liability that has accrued to date (in the region of £650m to £760m), but it does not have the resources to do so.”
It added: “The council will tighten the spend controls already in place and put them within the arms of the part 151 officer to make sure there’s full grip.
“The notice means all new spending, with the exception of protecting vulnerable people and statutory services, must stop immediately.
“The council’s senior officers and members are dedicated to coping with the monetary scenario and when extra info is obtainable it is going to be shared.”
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