Birmingham was by no means bankrupt, say finance consultants

However, the council stated that when the part 114 discover was issued it confronted an £87m funds shortfall and had not at that time secured authorities approval to cowl equal pay legal responsibility by borrowing or asset gross sales.

According to the council Carol Culley, govt director of finance, stated that the majority chief finance officers would doubtless have taken the identical choice primarily based on the knowledge out there on the time.

Cotton stated: “Under my leadership this council has taken the tough decisions and decisive action required to return to the mainstream of local government.”

An MHCLG spokesperson stated: “Birmingham City Council has made progress on its reform and recovery, but challenges remain, which is why commissioners continue to support the council to deliver for local people.”

Political reporter for BBC WM, Kathryn Stanczyszyn, stated questions over the monetary workings out of Birmingham’s ‘chapter’ hade been rumbling for a while.

“A figure of £760m was originally placed on the prospect of equal pay settlements, a significant part of the reason for the emergency intervention and subsequent cuts,” she stated.

“Now that deal has been done with female workers – but the council has not yet revealed what the bill will be.”