[ad_1]
Birmingham Metropolis Council has declared itself in monetary misery over multimillion-pound liabilities to settle equal pay claims.
In an announcement on Tuesday, Europe’s largest native authority confirmed that it had issued the declaration that it can’t steadiness its books.
It mentioned all new council spending within the metropolis, apart from defending susceptible individuals and statutory companies, should cease instantly.
A Birmingham Metropolis Council spokesperson mentioned: “Birmingham Metropolis Council has issued a s.114 discover as a part of the plans to fulfill the council’s monetary liabilities referring to equal pay claims and an in-year monetary hole inside its price range which presently stands within the area of £87m.
“In June, the council introduced it had a possible legal responsibility referring to equal pay claims within the area of £650m to £760m, with an ongoing legal responsibility accruing at a price of £5m to £14m monthly.
“The council remains to be able the place it should fund the equal pay legal responsibility that has accrued so far (within the area of £650m to £760m), however it doesn’t have the sources to take action.”
The spokesperson mentioned: “The council will tighten the spend controls already in place and put them within the palms of the part 151 officer to make sure there may be full grip.
“The discover means all new spending, apart from defending susceptible individuals and statutory companies, should cease instantly.
“The council’s senior officers and members are dedicated to coping with the monetary state of affairs and when extra data is out there it will likely be shared.”
Reacting to the information, chief of the Conservative opposition Robert Alden mentioned: “Labour’s failure in Birmingham has turn into clear for all to see, what Labour pledged was a golden decade forward to voters in 2022 seems to be based mostly on budgets in 20/21 and 21/22 that didn’t steadiness and have been unfunded.
“Mixed with Birmingham Labour’s refusal to take care of equal pay during the last decade this has created this mess the place residents will now lose helpful companies and funding.”
He added: “Birmingham Labour haven’t any grip of their mess and no potential to repair it, therefore why the ultimate say on spending management has now been faraway from the Labour political management.”
[ad_2]
Source link