Birmingham City Council effectively files for bankruptcy and stops all but essential spending

[emily]

Birmingham City Council has effectively filed for bankruptcy.

The council, which has been hit with a £1bn equal pay bill, had already announced a freeze on non-essential spending.

Europe’s largest local authority confirmed it had issued the declaration that it cannot balance its books.

It has issued a Section 114 notice - an admission that it cannot manage its catastrophic financial crisis without help.

A Section 114 notice is the equivalent of a white flag surrender that officers cannot see a way out of the mess without support and intervention, usually a plea to the government for help.

https://www.itv.com/news/central/2023-0 ... bankruptcy