The English city of Birmingham comes in second place Londonwith Europe’s largest city council with 101 members in 69 districts, declared itself “effectively bankrupt” this Tuesday (09/05/2023), due to the impossibility of meeting expenses derived from claims related to equal pay, and a decrease in funding granted by successive conservative governments. And the cost of living crisis.
The city council, now controlled by Labour, says it has a budget shortfall of £87 million (more than €100 million), compared to the costs of those equal pay claims amounting to £760 million (888 million euros). ). ).
They claim the crisis
The mayor, John Cotton, alleged several extraordinary expenses, such as a conviction for violating labor laws, reduced funding granted by successive Conservative governments for thirteen years, and a cost of living crisis.
He added that with social spending rising and inflation rising, councils like Birmingham face “unprecedented financial challenges”.
As an emergency measure, the so-called Birmingham City Council, which follows the process included in the Finance Code for Municipal Governments, warns in its memo that “all new expenditures, except for the protection of the most vulnerable people and mandatory services, will cease immediately.”
The council stresses that council members are “committed to resolving the situation” and will provide more information soon. Birmingham City Council, which directly serves 1.2 million residents, has paid £1.1 billion (€1.285 million) in pay discrimination claims.
ee (efe, AFP)
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