Birmingham City Council has effectively declared bankruptcy after being hit with a £760m bill to settle equal pay claims.

The council said it had issued a section 114 notice, confirming that all new spending, with the exception of protecting vulnerable people and statutory services, must stop immediately.

In a statement published on the Birmingham Mail, the council said it will “tighten the spend controls already in place and put them in the hands of the Section 151 officer to ensure there is complete grip”.

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