Insolvent city: London takes Birmingham under surveillance

DBritain’s Conservative government wants to hand Birmingham over to a commission that would put the nearly insolvent city on the path to consolidation. The local council, led by the opposition Labor Party, failed to carry out its responsibilities properly, cabinet minister Michael Gove justified the move in Parliament in London on Tuesday. He also announced an investigation into the reasons for the financial difficulties.

Birmingham is the second largest city in Great Britain after London. According to the BBC, there is a deficit of £87 million (equivalent to more than €100 million) in the council budget. In early September, the city declared itself de facto bankrupt. All but essential expenses were immediately stopped. A statement at the time said the city was facing unprecedented financial challenges. These include significant additional costs of adult care, reduced trade tax revenue and high inflation.

First, the city faces hundreds of millions in lawsuits from mostly female employees who claim they were paid less than their male counterparts for years.

The local council plans to discuss the rescue plan at an extraordinary meeting next Monday. There have already been suggestions in the media that the city may be forced to sell buildings and land.

Source: Frantfurter Allgemeine

Get in Touch


Please enter your comment!
Please enter your name here

Related Articles

Latest Posts