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London CNN —Birmingham — the biggest British city after London — is in dire financial straits. “Local government is facing a perfect storm,” Sharon Thompson, Birmingham City Council’s deputy leader, said in remarks broadcast Tuesday. How Birmingham went bustThompson blamed Birmingham’s financial troubles partly on an outstanding £760 million ($950 million) legal bill pertaining to the equal pay claims, which resulted from a Supreme Court ruling in 2012. The original case was brought by 174 former council employees, all except four of whom were women. They argued that this breached the equality clauses of their employment contracts under the Equal Pay Act of 1970 — and the court agreed.
Persons: London —, ” Sharon Thompson, Thompson, , Shaun Davies, Rishi Sunak, England —, Organizations: London CNN — Birmingham, Birmingham City Council’s, Birmingham City, National Audit Office, Local Government Association, UK, Special, Municipal Authorities Locations: London, United Kingdom, , Birmingham, England, , West Midlands, Yorkshire, Croydon, Woking
London CNN —Britain’s second-biggest city effectively declared itself bankrupt on Tuesday, shutting down all nonessential spending after being issued with equal pay claims totaling up to £760 million ($956 million). Birmingham City Council, which provides services for more than one million people, filed a Section 114 notice on Tuesday, halting all spending except on essential services. The deficit arose due to difficulties paying between £650 million (around $816 million) and £760 million (around $954 million) in equal pay claims, the notice report says. The city now expects to have a deficit of £87 million ($109 million) for the 2023-24 financial year. Sharon Thompson, deputy leader of the council, told councilors on Tuesday it faces “longstanding issues, including the council’s historic equal pay liability concerns,” according to the United Kingdom’s PA Media news agency.
Persons: London CNN —, Sharon Thompson, Thompson, Birmingham “, , , Rishi Sunak, John Cotton Organizations: London CNN, Birmingham City Council, United Kingdom’s, Media, Conservative Party, UK, BBC, Commonwealth Games, Commonwealth Locations: Birmingham, ” “, England
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