According to CNN , the insolvency notice was announced by Birmingham City Council after being required to pay equal wages totaling up to 760 million pounds ($956 million). Along with the insolvency notice, the city of Birmingham also suspended all spending, except for essential services.
Birmingham's 2023-24 budget deficit is forecast to be £87 million ($109 million).
Deputy City Council leader Sharon Thompson said they were facing long-term issues, including equal pay, and blamed the UK's ruling party for Birmingham losing £1 billion in funding.
“Like every city across the country, we are facing unprecedented financial challenges. From a sudden increase in welfare needs, to a decline in business revenues and the impact of rampant inflation,” Ms Thompson said.
Meanwhile, a spokesman for British Chancellor Rishi Sunak told the press that local authorities have a responsibility to manage their budgets and ensure the best use of taxpayers' money.
"The budget is managed by local councils. The government has worked closely with them to help them manage their finances. Councils are also required to make the best use of taxpayers' money," said a spokesman for Chancellor Rishi Sunak.
Birmingham is now the second largest city in the UK after London with a population of over 1.1 million people. It is a major international commercial centre, mainly developing the service industry.
Minh Hoa (reported by Dan Tri, VietNamNet)
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