Birmingham is broke
London puts insolvent city under supervision
September 19, 2023, 9:01 p.m
Britain’s second largest city is in financial trouble: Birmingham declared itself bankrupt at the beginning of September. Now the conservative British government is sending a commission to get the insolvent metropolis back on track.
The conservative British government wants to put Birmingham under a commission to put the practically insolvent city on a path to consolidation. The local council, led by the opposition Labor Party, had not adequately fulfilled its duties, the responsible cabinet member Michael Gove justified the step in Parliament in London. He also announced an investigation into how the financial difficulties could have come about.
Birmingham is the second largest city in the United Kingdom after London. According to the BBC, there is a gap of 87 million pounds, the equivalent of more than 100 million euros, in the municipal budget. The city declared itself de facto bankrupt at the beginning of September. All but essential spending was stopped with immediate effect. A statement at the time said the city was facing unprecedented financial challenges. These included significant additional expenses for adult care, a decline in income from trade tax and the high inflation rate.
Above all, the city administration is faced with claims in the hundreds of millions from mostly female employees who claim that they have been paid less than their male colleagues for years. Next Monday, the local council is scheduled to discuss a rescue plan in an extraordinary meeting. There has already been speculation in the media that the city could be forced to sell buildings and land.