UK’s second-biggest city declared itself bankrupt on Tuesday because it can’t afford nearly $1 billion (£760 million) it owes to female government employees it underpaid in the past.
[Note: Birmingham was issued with equal pay claims and which are part of a long-running battle with trade unions. In June, Birmingham City Council revealed they had paid out £1.1 billion to female workers but still had a current liability of £650-£750 million, accruing at a rate of £5 million to £14 million a month].
Europe’s largest local authority, which hosted last summer’s Commonwealth Games, and which provide services for more than one million people, filed a Section 114 notice, halting all spending except on essential services.
The budget cuts could affect services that the council are not bound by law to maintain, including libraries and cultural projects and the maintenance of roads and parks. The dire financial situation could even impact the 2026 European Athletics Championships, which are due to take place in Birmingham.
A spokesperson for UK Prime Minister Rishi Sunak responded that “clearly it’s for locally elected councils to manage their own budgets”.
In fact, Birmingham’s decision raised questions not only about governance at the council, but
was also a symptom of wider financial challenges facing local authorities. With the city indicating it cannot balance its books, experts warn of others already living ‘hand to mouth’.
was also a symptom of wider financial challenges facing local authorities. With the city indicating it cannot balance its books, experts warn of others already living ‘hand to mouth’.
No comments:
Post a Comment