Humiliation for Labour-led council as it declares itself ‘effectively bankrupt’

Labour-led Birmingham City Council has declared itself effectively bankrupt.

The local authority has issued a Section 114 notice preventing all but essential spending to protect core services.

In a joint statement, the council’s leader John Cotton and deputy leader Sharon Thompson said it was a “necessary step as we seek to get our city back on a sound financial footing”.

The statement said: “The council will tighten the spend controls already in place and put them in the hands of the Section 151 Officer to ensure there is complete grip.

“The notice means all new spending, with the exception of protecting vulnerable people and statutory services, must stop immediately.

“The council’s senior officers and members are committed to dealing with the financial situation and when more information is available it will be shared.”

Tory opposition leader Robert Alden said the council had “failed to show the proper speed and urgency needed to tackle equal pay”.


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