BIRMINGHAM City Council has announced they are essentially bankrupt and unable to pay their debts.
The council was recently hit with a near £1 billion equal pay bill and has since frozen all non-essential spending.
The Labour Administration at Birmingham City Council have today (Tuesday, September 5) published a section 114 notice announcing they cannot manage the equal pay debt and have no current solution to the problem.
It is reported the council released the following statement: “Today’s issuing of a Section 114 Notice is a necessary step as we seek to get our city back on a sound financial footing so that we can build a stronger city for our residents.
“Despite the challenges that we face, we will prioritise core services that our residents rely on, in line with our values of supporting the most vulnerable.”
The Conservative opposition have condemned the Labour Council’s failures to manage finances.
In a statement, leader of the Conservative opposition, Councillor Robert Alden said: “Labour’s failure in Birmingham has become clear for all to see, what Labour pledged was a Golden decade ahead to voters in 2022 turns out to be based on budgets in 20/21 and 21/22 that did not balance and were unfunded.
“Combined with Birmingham Labour’s refusal to deal with equal pay over the last decade this has created this mess where residents will now lose valuable services and investment”.
Finance director, Fiona Greenway issued the section 114 notice confirming the council’s financial disarray.
