The largest local authority in Europe issues a distress notice that means all new spending must cease.

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    71 year ago

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    The local authority - the largest in Europe - has issued a Section 114 notice preventing all but essential spending to protect core services.

    Such a notice, issued in the past by councils including Croydon and Thurrock, means a local authority has judged itself to be in financial distress and can no longer balance its budget.

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

    “Like local authorities across the country, it is clear that Birmingham City Council faces unprecedented financial challenges, from huge increases in adult social care demand and dramatic reductions in business rates income, to the impact of rampant inflation,” Mr Cotton and Ms Thompson said, adding local government faced “a perfect storm”.

    The statement continued: "We implemented rigorous spending controls in July, and we have made a request to the Local Government Association for additional strategic support.

    The leaders’ statement said: “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.”


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