Birmingham City Council, which is considered the largest in Europe with 101 members in 69 districts, announced itself “virtually bankrupt” on Tuesday, due to the impossibility of meeting the expenses resulting from claims related to equal pay.
The Council of the second British city after London said in a statement: “He does not have enough resources” To meet these and other expenses associated with implementing a new computer system, “It currently has no other way to fulfill this responsibility.”
City Hall, now controlled by the Labor Party, Pointing out that it has a budget deficit of 87 million pounds (more than €100 million), compared to the costs accrued for those equal pay claims amounting to £760 million (€888 million).
As an emergency measure, the so-called Birmingham City Council, which follows the process included in the Finance Code for Municipal Governments, warns in its memorandum that… “All new expenditures, except for the protection of the most vulnerable groups and Mandatory services will be discontinued immediately“.
The council stresses that council members are “committed to resolving the situation” and will provide more information soon.
Birmingham City Council, which directly serves a population of 1.2 million, has paid out £1.1 billion (€1.285 million) in pay discrimination claims since the British High Court ruled in 2012 in favor of dozens of employees who, as classroom assistants or cleaners, They received lower wages than their colleagues in male-dominated jobs, such as cleaners.
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