September 05, (THEWILL) – Birmingham City Council has declared itself effectively bankrupt, just a year after hosting the successful 2022 Commonwealth Games, according to reports.
The council, Europe’s largest local authority, confirmed it had issued a notice stating it cannot balance its books. It does not plan to seek financial assistance from the central government in London to resolve the situation at this time.
The financial issues are linked to a £760 million bill to settle equal pay claims, rather than expenses from hosting the Commonwealth Games, which was widely praised. However, the bankruptcy declaration is nevertheless an embarrassment after the event was seen as a triumph for Birmingham.
Earlier this year, Ian Ward was controversially removed as Leader of the Council and replaced by John Cotton. Ward had led Birmingham’s successful bid for the 2022 Games and oversaw their delivery. His removal followed an internal report citing issues of racism, misogyny and harassment within the Labour leadership.
The council stated the bankruptcy notice was “a necessary step” to get the city’s finances stable again. It vowed to prioritise core services and support the most vulnerable residents despite the challenges.
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Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
