The British city of Birmingham went bankrupt

The local government of Birmingham, England, which is the largest council in Europe, has declared itself bankrupt.

Birmingham is the largest city in the United Kingdom after London in terms of population and tax collection and has a population of over 200 million and a tax payer of around one million.

According to the British broadcasting organization ‘BBC’, Birmingham Council’s financial officer issued a notice of bankruptcy of the council under section 144 of the Local Government Finance Act 1988.

Under the said Act, any council can issue a notice of bankruptcy when it is facing financial difficulties and is unable to raise the required amount for expenditure.

A notice issued by Birmingham Council stated that the council had to bear an additional burden of one billion dollars this financial year due to paying equal and equal salaries and benefits to male and female civil servants, which led to the financial Difficulties arose.

The Birmingham administration was ordered by the Supreme Court of Great Britain to give equal pay to all civil servants, meaning that men and women in every position should be paid the same regardless of their gender.

Previously there was a significant pay gap between men and women in a number of local government bodies in Birmingham.

After the council’s bankruptcy notice, local authorities will no longer spend money on anything other than essential work.

According to the management, the council will now not spend any money on any new projects except for the most essential emergency relief works including health, education and sanitation for several months, but the employees will continue to be paid equal salaries.

Birmingham council hopes to reduce its financial losses to less than $100 million by the next financial year after the administration declared bankruptcy.

It should be noted here that the British Government has nothing to do with the Birmingham Council declaring itself bankrupt, neither the Central nor the State Governments will be affected.

Before Birmingham, in November and December 2022, two councils in the British state of England had declared themselves bankrupt, of which a London suburb council had gone bankrupt for the third time in a row.