Birmingham Declares Bankruptcy; What Has Its Pakistani Population To Do With It?

The Birmingham City Council, the largest local authority in Europe, has declared bankruptcy and suspended all spending except for essential services due to a lack of resources, with critics blaming the Pakistani and Bangladeshi population for negatively impacting the council's balance sheets.

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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.

9/6/2023

UK's Second Biggest City Declares Financial Distress

Birmingham City Council has issued a Section 114 Notice, blocking spending on all but essential services, due to years of under-funding by Conservative governments, creating a financial crisis for the city.

9/11/2023

Local councils face financial crisis with billions in debt, warns credit agency

More English councils are expected to face insolvency due to high levels of debt caused by budget cuts, mismanagement, and risky commercial property investments, according to credit rating agency Moody's. The agency listed the 20 most indebted councils in England and warned of the financial pressures faced by local authorities, including falling property values, rising inflation, and increased demand for social care services. The scrapping of the Audit Commission in 2015 has also resulted in a lack of external scrutiny and transparency at councils.

9/19/2023

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 it declared itself bankrupt, proposing appointing commissioners and implementing a financial recovery plan including job cuts, tax increases, and asset sales.

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Posted 9/15/2023, 11:16:54 AM