Birmingham City Council 'admits defeat' and urges government to step in after £1bn financial crisis
manchestereveningnews.co.ukBirmingham City Council has said it's admitted 'defeat' in managing its financial crisis. The council issued a Section 114 notice today which means it is unable to find a way to balance the books.
It is believed a massive equal pay liability bill topping £1 billion plus the cost of fixing a key IT programme and the rising cost of meeting demand for adult social care have taken their toll.
The council has called for government intervention which could include a recruitment freeze, a non-essential spending ban, and a call to staff to apply to quit in order to cut wage bills.
A statement from the council reads: "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," Birmingham Live reports. Try MEN Premium for FREE by clicking here for no ads, fun puzzles and brilliant new features "In June the Council announced that 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.
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