Birmingham, the second largest city in England, declared bankrupt, find out why such a situation occurred

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Britain’s second largest city, Birmingham (caused by the Birmingham bankruptcy), has been declared bankrupt. In a city with a population of over 11 lakh, all non-essential expenditure except essential services was banned. Apart from this, the salary of the people working here was also stopped.

Birmingham City Council officials have issued a notice in this regard, stating that the decision to file for bankruptcy has been made due to an annual budget shortfall of billions of rupees. Birmingham is the largest local authority in Europe with over 100 councillors.

Why did such situations happen?

Birmingham City Council filed a Section 114 notice on Tuesday, saying the cost of equal pay claims has resulted in negative economic conditions such as current poverty. Accordingly, the potential cost of new equal pay claims would be between about $816 million (Rs 67 billion) and about $954 million (Rs 79 billion). When the council does not have enough resources to cover it. At the same time, for the fiscal year 2023-24, the city is now projected to have a deficit of $109 million (Rs 9 billion).

The government was held responsible

Sharon Thompson, the council’s deputy leader, told councilors she was dealing with long-standing issues, including concerns about the council’s historic equal pay liability. Thompson also blamed Britain’s ruling Conservative Party. Let us tell you that this multicultural city is the largest city in Central England. The Commonwealth Games were organized here last year.

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