Posted 9/19/2023, 4:44:00 PM

UK Government Takes Control of Birmingham After City Council Goes Bankrupt

The UK government is taking control of Birmingham, the country's second largest city, after the city council declared bankruptcy.
The government plans to appoint commissioners to run Birmingham's day-to-day operations and oversee a financial recovery plan.
Birmingham's financial troubles stem partly from large payouts to compensate female employees paid less than men historically.
The city expects a £87 million budget deficit for 2023-24.
Birmingham's recovery plan may involve job cuts, asset sales, tax hikes, and additional government funds.

cnn.com

Relevant topic timeline:

9/5/2023

Britain's second-largest city effectively declares itself bankrupt amid $950 million equal pay claims

Birmingham City Council has declared itself effectively bankrupt after being hit with equal pay claims worth up to £760 million, forcing it to cease all nonessential spending. The deficit arises from difficulties in paying the claims, and the city expects to have a deficit of £87 million for the 2023-24 financial year. The council's leader has stated that a new jobs model will be implemented to address the claims bill.

9/9/2023

Birmingham Declares Bankruptcy Due to Equal Pay Disputes and Overspending

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