The leader of Birmingham City Council has said it is faced with “stark choices” as councillors approved a financial recovery plan. The authority declared itself essentially bankrupt earlier this month in part over a £760m equal pay bill.
During Monday’s four-hour, often fractious meeting, councillors took turns to question how Europe’s largest authority reached this position.
They included accepting the Section 114 notice, essentially acknowledging the council’s spending commitments exceed its revenue; agreeing spending control measures until it has passed a new budget; endorsing activity to address its financial pressures; and to receive a further report and emergency budget next month.
The decision came less than a week after the government announced it would send in commissioners to help run the local authority due to its financial crisis.
