Birmingham city council declares itself in financial distress
by Jessica Murray Midlands correspondent from World news | The Guardian on (#6EFAR)
UK's largest council issues section 114 notice, signalling it cannot balance its budget without help
Birmingham city council, the largest local authority in the country, has in effect declared itself bankrupt after issuing a section 114 notice, signalling that it does not have the resources to balance its budget.
The notice, preventing all but essential spending to protect core services, was issued on Tuesday with council leaders blaming a 760m bill for equal pay claims, problems installing a new IT system and 1bn in government cuts over the past decade.
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