The Labour-run authority declared itself effectively bankrupt last year, partly because of cases brought by two trade unions.
Birmingham City Council has finally agreed to settle equal pay claims going back decades - with suggestions the bill is lower than feared.
'It is an important step on the council's improvement journey. I would like to put on record my thanks to GMB and Unison for the constructive way in which they have approached these negotiations. Councillor John Cotton, the council leader who was handpicked for the role by Keir Starmer, said the settlement was an 'important step'
The end of crisis payments for food and energy bills, a clampdown on those behind on council tax bills, the addition of an automated voice system for customer services and job cuts.Other savings anticipated through overall hikes to service charges and cuts to external contracts.Advertisement Earlier this year it was said to be on a 'narrow path to financial sustainability' depending on budget cuts.
As of March last year, the council estimated that equal pay liabilities still current were in the region of £650million-£760million, with 'this liability continuing to accrue at an estimated rate of between £5million and £14million a month'.The reduction is not expected to affect the wider budget cuts and tax rises, but could mean the council has to sell off fewer assets to balance an emergency loan from central government.
The full terms of the settlement reached with GMB and Unison are confidential, but the council said the cost falls within the limit of an Exceptional Financial Support package agreed with the previous government in January.
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