Birmingham City Council has declared bankruptcy because of £760m in unpaid equal pay claims. Hackney, Thurrock, Woking and Northamptonshire have all had to file similar notices.
Birmingham City Council has become the latest to declare bankruptcy after racking up millions in debt.as it struggles to repay £760m in equal pay claims.
In 2000, the Labour-run administration declared it didn't have the funds to meet its spending commitments.Advertisement It was left with shortfalls of £70m - just after it spent £53m on a new building for its headquarters.Ultimately in 2021, the county council and seven districts underneath it were dissolved and reorganised into two unitary authorities - North and West Northamptonshire.Labour-run Slough Borough Council declared bankruptcy in July 2021 after discovering a £100m gap in its finances.
The council's investment policy was paused in September 2020 before government commissioners were brought in two years later to monitor spending.
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