Displaying items by tag: bankruptcy

Birmingham City Council, Europe's largest local authority, has approved significant service cuts to address a financial crisis, including a 21% increase in council tax over two years. The council, facing bankruptcy, must save £300m, resulting in "devastating" measures. Council Leader John Cotton expressed deep regret for the impact on city residents. Last September, the council announced its inability to meet financial obligations, leading to a section 114 notice declaration, signifying bankruptcy. This was prompted by equal pay claims amounting to £760m and a £80m overspend on a problematic IT system. These austerity measures, labelled unprecedented by Cotton, have prompted widespread criticism from local Conservatives and protests from residents. Up to 600 council jobs are at risk, and public services like libraries, parks, and cultural projects face reductions. Other measures include reviewing school transport, eliminating arts funding, selling off community centres, reducing fly-tipping enforcement, and introducing parking charges in country parks. The financial outlook remains challenging for Birmingham, with looming equal pay liabilities and IT system overspends. Despite a £1.25bn government bailout loan, the city faces the daunting task of repaying this through asset sales. See also

Birmingham City Council has announced that it is bankrupt, and all new spending will stop, with the exception of money protecting vulnerable people and legal services. Following the bankruptcy announcement, Birmingham’s faith leaders raised a ‘Call to Prayer for Birmingham’ outside the council house between 6.00 and 6.45 pm on Friday 8 September. Currently, the council's outgoings and legal liabilities are more than it can afford, and Bishop Desmond Jaddoo is calling all faith leaders to come together in prayer and to offer what help they can in this time of need. Bishop Jaddoo said, ‘We've noticed that at times like this, the poor, the vulnerable, families who are struggling with the cost of living, our children will feel the impact this is going to have. It's going to exacerbate pre-existing hardships along with cuts in services. We are in this together, and we've got to come together to deal with this collectively.’

Puerto Rico has been in a painful recession since 2006; previous governments dug it deeper into debt by borrowing to pay operating expenses, year after year. For the last two years, officials have been seeking assistance from Washington, testifying before stern congressional committees and even before the supreme court. In May, with creditors at its heels and its coffers depleted, it sought what is essentially bankruptcy relief in federal court, the first time in history that an American state or territory has taken this extraordinary measure, because of a $123 billion debt. Government workers are foregoing pension money; public health and infrastructure projects are not happening because of the crushing weight of debt. Now, Hurricane Maria has ripped through Puerto Rico, causing potentially thirty billion dollars in damage and threatening to exacerbate the population exodus that has helped push the island into bankruptcy. See