Birmingham city council, the local government body of the U.K.'s second-largest city, effectively declared itself bankrupt on Tuesday because it doesn’t have enough money to pay £760 million ($955 million) in equal pay claims it owes to female government employees who were paid less than men in the past.
The council, which is Europe’s largest local authority, issued a section 114 notice to cut all nonessential spending, declaring that it faces a deficit of £87 million ($109 million) in the current financial year.
