Beeb says financial stress I heard bankrupt on radio news.
https://www.bbc.co.uk/news/uk-englan...ngham-66715441
Birmingham City Council has formally declared itself in financial distress.
The authority has issued a Section 114 notice that prevents all but essential spending to ensure services are still provided.
In June, the council said it had to pay up to £760m to settle equal pay claims.
In a joint statement, its leader and deputy leader said the notice was a "necessary step as we seek to get our city back on a sound financial footing".
Such a notice, issued in the past by councils including Croydon and Thurrock, means a local authority cannot balance its budget and is effectively bankrupt.
In their statement, Labour councillors John Cotton and Sharon Thompson, leader and deputy leader respectively, said the authority was also facing financial pressures due to issues with the implementation of its Oracle IT system.
"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," they 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.
"[Tuesday's] issuing of a Section 114 Notice is a necessary step as we seek to get our city back on a sound financial footing so that we can build a stronger city for our residents.
"Despite the challenges that we face, we will prioritise core services that our residents rely on, in line with our values of supporting the most vulnerable."
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