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.

cnn.com

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9/9/2023

Birmingham Declares Bankruptcy Due to Equal Pay Disputes and Overspending

The Birmingham City Council in England has declared itself bankrupt due to financial difficulties, with the main causes being equal pay claims and excessive spending on projects such as an IT system and the Commonwealth Games bid. The council has issued a Section 114 notice, halting all but essential spending. The Conservative government has refused to provide further funding, stating that it's the responsibility of local councils to manage their own budgets.

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.