Birmingham’s effective bankruptcy is uniquely tied to hefty compensation claims it has had to pay former female employees who were historically paid less than men for similar work.^1
>But it is not alone in facing a serious funding shortfall, which is partly a symptom of deep cuts to central government spending over the past decade that have left Britain’s public services, including schools and hospitals, in a state of disrepair.
>[…] Alongside the equal pay claims and the costs of installing a new IT system, Thompson of Birmingham City Council also blamed the city’s downfall on the “£1 billion of funding taken away by successive Conservative governments.”
>When the UK government adopted an austerity program in 2010 on the heels of the global financial crisis, it slashed funding to local councils.
>According to the National Audit Office, government funding to local authorities in England dropped by more than 50% between the 2010-11 and 2020-21 financial years.
>In a statement, Shaun Davies, chair of the Local Government Association, said councils faced a funding gap of almost £3 billion ($3.8 billion) over the next two years “just to keep services standing still.”
>
>Several other local councils have already declared themselves effectively bankrupt in recent months — including those in Croydon, part of greater London, and Woking, a town just south of the capital.
>And Birmingham is unlikely to be the last. A recent survey by the Special Interest Group of Municipal Authorities — a lobby group representing 47 urban authorities in England — found that 30% of its members are worried that they, too, face the risk of bankruptcy this year and next.
>“The funding system is completely broken,” SIGOMA chair said in a statement last month. “Councils have worked miracles for the past 13 years, but there is nothing left.”
What’s the end goal here? Has the tory government gutted councils and their services during their reign knowing the labour government will have to restore them (and therefore be accountable for the cost of doing so)?
Careful what you wish for. Get compensation but denied services down the line.
So, there’s spending on a new IT system, and funding cuts, but its those pesky women’s fault for wanting equal pay for equal work?
I guess “council incompetence leads to bankruptcy” doesn’t have the same ring to it. Or “government underfunding leads to bankruptcy”.
Not really sure why the failings of councillors to pay people correctly means the people of Birmingham have to pay off the lawsuit. Should be central government paying it with all council and civil servants involved struck off and banned from taking up any public office role again
if you can attach some sort of identity issue to what would otherwise be a completely ignorable case, people go nuts for it
A group of men in exactly the same circumstances never would have succeeded in this suit.
6 comments
Birmingham’s effective bankruptcy is uniquely tied to hefty compensation claims it has had to pay former female employees who were historically paid less than men for similar work.^1
>But it is not alone in facing a serious funding shortfall, which is partly a symptom of deep cuts to central government spending over the past decade that have left Britain’s public services, including schools and hospitals, in a state of disrepair.
>[…] Alongside the equal pay claims and the costs of installing a new IT system, Thompson of Birmingham City Council also blamed the city’s downfall on the “£1 billion of funding taken away by successive Conservative governments.”
>When the UK government adopted an austerity program in 2010 on the heels of the global financial crisis, it slashed funding to local councils.
>According to the National Audit Office, government funding to local authorities in England dropped by more than 50% between the 2010-11 and 2020-21 financial years.
>In a statement, Shaun Davies, chair of the Local Government Association, said councils faced a funding gap of almost £3 billion ($3.8 billion) over the next two years “just to keep services standing still.”
>
>Several other local councils have already declared themselves effectively bankrupt in recent months — including those in Croydon, part of greater London, and Woking, a town just south of the capital.
>And Birmingham is unlikely to be the last. A recent survey by the Special Interest Group of Municipal Authorities — a lobby group representing 47 urban authorities in England — found that 30% of its members are worried that they, too, face the risk of bankruptcy this year and next.
>“The funding system is completely broken,” SIGOMA chair said in a statement last month. “Councils have worked miracles for the past 13 years, but there is nothing left.”
^1 https://edition.cnn.com/2023/09/06/economy/birmingham-city-council-bankruptcy-explainer/
What’s the end goal here? Has the tory government gutted councils and their services during their reign knowing the labour government will have to restore them (and therefore be accountable for the cost of doing so)?
Careful what you wish for. Get compensation but denied services down the line.
So, there’s spending on a new IT system, and funding cuts, but its those pesky women’s fault for wanting equal pay for equal work?
I guess “council incompetence leads to bankruptcy” doesn’t have the same ring to it. Or “government underfunding leads to bankruptcy”.
Not really sure why the failings of councillors to pay people correctly means the people of Birmingham have to pay off the lawsuit. Should be central government paying it with all council and civil servants involved struck off and banned from taking up any public office role again
if you can attach some sort of identity issue to what would otherwise be a completely ignorable case, people go nuts for it
A group of men in exactly the same circumstances never would have succeeded in this suit.