Title

FINANCE

Pay ruling could 'bankrupt' city

Birmingham City Council, warns could run out of cash unless the Treasury allows it to spread the cost of a equal pay settlement.

The UK's largest local authority, Birmingham City Council, has warned it could run out of cash unless the Treasury allows it to spread the cost of a £757m equal pay settlement.

‘Bankruptcy' alarms were raised after auditor Grant Thornton handed the council a ‘qualified value-for-money conclusion' for its financial resilience, economy, efficiency and effectiveness ‘due to the increasing impact of equal pay claims'.

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