The largest local authority in Europe issues a distress notice that means all new spending must cease.
In July, the city councilThe authority said its bill over equal pay claims was increasing at a rate of £5m to £14m per month.
It said it was in a position where it must fund the liability accrued to date but it did not have the resources to do so. Because of the situation, it added, the council's interim director of finance, Fiona Greenway, had issued the Section 114 notice, which confirmed there were insufficient resources to meet the equal pay expenditure and there were no other means of meeting the liability.
The leaders' statement said: "The council's senior officers and members are committed to dealing with the financial situation and when more information is available, it will be shared.
No new expenditure is permitted with the exception of funding statutory services, including safeguarding vulnerable people, but existing commitments and contracts will continue to be honouredThurrock, Croydon, Slough and Northamptonshire have issued
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