Birmingham City Council has issued a second section 114 notice as it has failed to come up with a plan to meet its equal pay liabilities.
The council issued a s114 notice at the start of this month amid growing financial problems, freezing all non-statutory spending and giving authorities 21 days to issue a balanced budget.
But now the council has issued a second s114 notice to deal with the rising cost of the equal pay bill – thought to be £5-14m a month – after councillors refused to make a decision on how to resolve the problems.
Birmingham’s monitoring officer also issued a section 5 notice, warning the council could be on uncertain legal grounds.
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