Birmingham City Council Effectively Bankrupt After Being Slapped With £760M Bill

Jesse Williams

By Jesse Williams

Jesse Williams

5 Sep 2023

Birmingham City Council is effectively bankrupt according to the local authority itself after being slapped with a £760m bill.

The near ten figure bill to settle equal pay claims has led to Europe’s largest local council filing a Section 114 notice, only done when a local authority has judged itself to be in financial distress and can no longer balance its budget.

The statement given by the council spokesperson read: “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 announced it had a potential liability relating to equal pay claims in the region of £650m to £760m, with an ongoing liability accruing at a rate of £5m to £14m per month,”

“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,”

“The council’s senior officers and members are committed to dealing with the financial situation and when more information is available it will be shared.”