{"id":8275,"date":"2023-09-05T14:01:00","date_gmt":"2023-09-05T14:01:00","guid":{"rendered":"https:\/\/wp26.cmswebdeveloper.com\/asian-news\/birmingham-city-council-declares-itself-effectively-bankrupt\/"},"modified":"2023-09-05T14:01:00","modified_gmt":"2023-09-05T14:01:00","slug":"birmingham-city-council-declares-itself-effectively-bankrupt","status":"publish","type":"post","link":"https:\/\/wp26.cmswebdeveloper.com\/asian-news\/birmingham-city-council-declares-itself-effectively-bankrupt\/","title":{"rendered":"Birmingham City Council declares itself effectively bankrupt"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.asianexpress.co.uk\/wp-content\/uploads\/2023\/09\/birmingham_city_council-jpg.webp\" alt=\"\" class=\"wp-image-48063\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Birmingham City Council has declared itself effectively bankrupt. The local authority &#8211; Europe&#8217;s largest &#8211; has issued a notice preventing all but essential spending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The pressures have been linked to a \u00a3760m bill to settle equal pay claims, with \u00a31.1bn already paid to settle claims after a Supreme Court ruling in 2012.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But as of March, the liability was still estimated to be between \u00a3650m and \u00a3760m. The 2012 ruling found hundreds of mostly female employees in roles including catering and cleaning had not been paid fairly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s also emerged that fixing the council\u2019s botched IT system could also cost up to \u00a3100m.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">GMB Union, Birmingham City Council\u2019s largest staff union, has responded to the announcement that the authority has issued a Section 114 notice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Section 114 notice is issued when Council officials believe they do not have the resources available to meet their required expenditure for the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It came as Council representatives were expected to appear at the Employment Tribunal to attempt to defend their job evaluation scheme against thousands of equal pay claims submitted by GMB members employed by the council.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Birmingham City Council Chief Executive Deborah Cadman told Councillors in June that the Council owed between \u00a3650 million and \u00a3760 million to its workers to settle its equal pay liability, adding that the figure was growing by between \u00a35 million and \u00a314 million every month.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The council\u2019s latest estimate places the liability at over \u00a31 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Michelle McCrossen, GMB Organiser, said: \u201cToday\u2019s announcement is a humiliating admission of failure on the part of Birmingham City Council\u2019s officials and leadership.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cNot only are they responsible for creating this crisis through years of discriminating against their own staff, but even they no longer believe themselves capable of fixing it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFor decades the Council has stolen wages from its low-paid women workers, running up a huge equal pay liability that has brought Birmingham to the brink.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cDue to the reckless incompetence of council bosses, thousands of city employees will be worrying for the future of their jobs and of the essential services that they provide for the people of Birmingham.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cGMB will continue to fight for pay justice for our members, and to ensure those responsible for this crisis are held to account.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Birmingham City Council has declared itself effectively bankrupt. The local authority &#8211; Europe&#8217;s largest &#8211; has issued a notice preventing all but essential spending. The pressures have been linked to a \u00a3760m bill to settle equal pay claims, with \u00a31.1bn already paid to settle claims after a Supreme Court ruling in 2012. But as of [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1679,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[74],"tags":[2385,148,2386,2387,81,65,82,86],"class_list":["post-8275","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","tag-bankrupt-councils","tag-birmingham","tag-birmingham-council-bankrupt","tag-gmb","tag-manchester","tag-midlands","tag-national","tag-yorkshire"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Birmingham City Council declares itself effectively bankrupt - Asian News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wp26.cmswebdeveloper.com\/asian-news\/birmingham-city-council-declares-itself-effectively-bankrupt\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Birmingham City Council declares itself effectively bankrupt - Asian News\" \/>\n<meta property=\"og:description\" content=\"Birmingham City Council has declared itself effectively bankrupt. The local authority &#8211; Europe&#8217;s largest &#8211; has issued a notice preventing all but essential spending. The pressures have been linked to a \u00a3760m bill to settle equal pay claims, with \u00a31.1bn already paid to settle claims after a Supreme Court ruling in 2012. 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