Birmingham Bankruptcy: Rishi Sunak’s First Statement on the Insolvency of UK’s Second Largest State

09 Sep, 2023 Author: Ayushee Joshi

Birmingham Goes Bankrupt: Birmingham, Britain’s second-largest city, has been declared bankrupt. Birmingham City Council has declared bankruptcy and has filed a Section 114 notice. According to the notification, all expenditure in the city, save for basic services, has been forbidden with immediate effect. Furthermore, the salaries of those who work here have been suspended. According to Birmingham City Council, the decision to declare bankruptcy was made owing to an annual budgetary shortage of billions of rupees.

Rishi Sunak Statement on Birmingham Bankruptcy

With 79 billion rupees in pending wage claims, the council estimates a $109 million shortfall in the current fiscal year. Sharon Thompson, deputy leader of the Council, stated that this issue has been ongoing for a long time. Meanwhile, British Prime Minister Rishi Sunak is said to have blamed the Labour Administration for the crisis. According to the PM’s spokeswoman, the government has already allocated additional cash for councils totaling around 10% of its budget, but it is up to locally elected municipalities to handle their own finances.