The second largest city in Great Britain declares bankruptcy
Birmingham, Britain's second largest city, declared bankruptcy on Tuesday.
Birmingham City Council, which provides services to more than a million people, issued a notice on Tuesday banning all but essential services. One of the largest local authorities in Europe has declared that it was unable to repay the financial obligations of the administration.
The debt that has pushed the entity into crisis, according to the council, was a historic account of unequal payments.
A High Court ruling in 2012 ruled that hundreds of women had been discriminated against in their pay compared to their male counterparts. The council has already paid around £1.1 billion, but in June an additional bill revealed of £760 million is straining the council's budget capacity.
Local government across Britain is facing financial difficulties due to increasing demand for assistance from citizens. In addition, the general reduction of income, as well as the wave of inflation, had negative effects on the budget.
According to the authorities, it is expected that the accumulated debt will increase to 2 billion pounds. Meanwhile, in July, British finance officials said they were struggling to meet ever-increasing demands for basic services mandated by law from local authorities.