Birmingham City Council, the U.K.’s second-largest local authority, has declared itself insolvent.
The council does not have sufficient funds to pay 760m ($955m) pounds in equal pay entitlements owed to female government staff who have been underpaid in the past, according to a Fortune report.
The council, Europe’s biggest, has issued a Section 114 notice to reduce all non-essential expenditures, claiming that it faces an 87m pounds ($109m) deficit for the current financial year. Birmingham is also the location of the 2022 Commonwealth Games.
In a statement, the Birmingham City Council said,
The Council has insufficient resources to meet the equal pay expenditure and currently does not have any other means of meeting this liability, the notice means all new spending, with the exception of protecting vulnerable people and statutory services, must stop immediately.
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~News Source: http://rb.gy/5c929
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