Birmingham: The council of Birmingham, the second largest city in the United Kingdom, has declared the city to be in total default, a notice has also been issued.
According to CNN, the city was declared in default by the Birmingham City Council. The announcement comes after an order to pay employees up to 760 million pounds ($956 million) in equal pay.
With a default notice Birmingham Council has stopped spending on all but essential services. City Council Deputy Leader Sharon Thompson said they face long-term issues, including the obligation to pay employees equal pay. Furthermore, the current UK government is responsible for the loss of £1 billion in Birmingham’s funding.
The deputy leader also said that like every city across the country, we are facing dire financial challenges ranging from a sudden increase in welfare needs to declining business income and the effects of rising inflation.
On the other hand, British Prime Minister Rishi Sonak’s spokesperson said that the city budget is managed by the local council. The Government has regularly supported local people to help councils generate reasonable income and expenditure. Apart from this, councils also need to improve their performance.
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