Sharon Thompson, deputy leader of the council, told councilors that the city faces "longstanding issues, including the council's historic equal pay liability concerns," according to the U.K.'s PA Media news agency. Back in 2012, the Supreme Court ruled in favor of a group of mostly female employees who didn't receive bonus payments that were given to those occupying traditionally male-dominated roles at Birmingham's council. 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 included. In June it had already paid £1.1 billion ($1.4 billion) but still had some remaining claims which it estimated would accrue at the rate of between £5 million ($6.3 million) and £14 million ($17.6 million) a month. "This is one of the biggest challenges this council has ever faced, and we apologize for the failure to get this situation under control," the council said at the time, adding that it was in talks with external auditors to find possible solutions. Thompson also admitted that the local government is facing a perfect storm. "Like councils across the country, it is clear that this council faces unprecedented financial challenges, from huge increases in adult social care demand and dramatic reductions in business rates incomes to the impact of rampant inflation." However, she assured that while the council is facing significant challenges, the city is still open for business and they are welcoming people as they come along. (Related: Bankruptcy filings in U.S. surge at fastest pace since 2009 as Bidenflation continues to ravage Americans, businesses.) British Prime Minister Rishi Sunak said: "Clearly it's for locally elected councils to manage their own budgets." He added that the government has been "engaging regularly with them to that end and has expressed concern about their governance arrangements and has requested assurances from the leader of the council about the best use of taxpayers' money." Birmingham city council leader John Cotton told the BBC that the council was working with the union to introduce a thorough job evaluation scheme to settle the equal pay row by April 2025. "My priority now is ensuring that we have a financial recovery plan in place that can meet the great demands that are placed upon the council and continue to provide the services that the city relies on," he vowed to the public.Birmingham City Council effectively declares bankruptcy as it says it needs to stop all but essential spending https://t.co/HbBF4niwzz
— BBC Politics (@BBCPolitics) September 5, 2023
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