The Labour-run council has filed a Section 114 notice, which restricts all but essential spending
The Supreme Court ruled in favour of 174 mostly female employees – working in jobs such as teaching assistants, cleaners and caterers – who had missed out on bonuses awarded to staff in more traditionally male-dominated roles such as refuse collectors and street cleaners.
A council spokesperson said: “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 , but it does not have the resources to do so.”
Council leader John Cotton and deputy leader Sharon Thompson said the authority had also struggled with its finances due to the implementation of its Oracle IT system. The system was originally supposed to cost £19m with the aim of streamlining council payments and HR systems, but it has emerged it could end up costing as much as £100m.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Birmingham City Council declares financial distressThe authority issues a notice that means it will only be able to spend on essential services.
Read more »
Birmingham City Council effectively declares bankruptcy after being hit by £760m billBirmingham City Council has effectively declared bankruptcy after being hit with a £760m bill to settle equal pay claims.
Read more »
Birmingham City Council in financial distress over equal pay claimsEurope’s largest local authority said all new spending, with the exception of protecting vulnerable people and statutory services, must stop.
Read more »
Birmingham City Council in financial distress over equal pay claimsEurope’s largest local authority said all new spending, with the exception of protecting vulnerable people and statutory services, must stop.
Read more »
Birmingham City Council 'effectively bankrupt'The largest local authority in Europe issues a distress notice that means all new spending must cease.
Read more »