Birmingham City Council Effectively Declares Bankruptcy

The council spent over one billion on the equal pay claims, with an ongoing liability accruing at a rate of five to £14 million per month.

People employ social distancing as they queue for a bakery in Birmingham city centre in central England on the morning of March 21, 2020. Justin Tallis/AFP via Getty Images

Birmingham City Council has declared itself effectively bankrupt after it failed to settle a £760 million bill on equal pay claims.

The council has issued a Section 114 notice, announcing that all new spending, with the exception of protecting vulnerable people and statutory services, will stop.