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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 declaring itself in financial distress, the local authority 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”.

The Labour-run council is the largest local authority in Europe, comprising 101 councillors (65 Labour, 22 Conservative, 12 Liberal Democrat and two Green).

The statement read: “Birmingham City Council has issued a s.114 notice as part of the plans to meet the council’s financial liabilities relating to equal pay claims and an in-year financial gap within its budget which currently stands in the region of £87m.

“In June, the council announced it had a potential liability relating to equal pay claims in the region of £650m to £760m, with an ongoing liability accruing at a rate of £5m to £14m per month.

“The council is still in a position where it must fund the equal pay liability that has accrued to date (in the region of £650m to £760m), but it does not have the resources to do so.”

It added: “The council’s senior officers and members are committed to dealing with the financial situation and when more information is available it will be shared.”

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Equal pay crisis

Sky’s Midlands correspondent Becky Johnson said the council has been in talks in recent months over the management of finances in Britain’s second city and the equal pay crisis.

It comes after a Supreme Court ruling back in 2012 found in favour of mostly female employees of Birmingham City Council – and that a bonus scheme that was handed out to staff in certain roles favoured those which were mainly taken up by men.

Johnson said: “They have been paying out these claims over the years, but the bill is now increasing by about £14m a month and currently stands at £760m – and is just not money the council can afford to spend.

“We know over the summer they stopped essential spending to try to meet this bill – they tried to do this without taking this measure.”

She said the implications of the section 114 notice are “serious”, adding there will be a huge reduction in investment from the council in the city while it tries to figure out how it is going to pay the bill.

Political fallout

“Now this has provoked a huge political row,” Johnson added. “The leader of the Conservative group is accusing the Labour-led council of failing to get a grip of the equal pay issue, and accused them of lying to the public that things were looking rosier than they were financially over recent years.”

Councillor Robert Alden, leader of the Conservative opposition, said: “Labour’s failure in Birmingham has become clear for all to see. What Labour pledged as a golden decade ahead to voters in 2022 turns out to be based on budgets in 20/21 and 21/22 that did not balance and were unfunded.

“Combined with Birmingham Labour’s refusal to deal with equal pay over the last decade this has created this mess where residents will now lose valuable services and investment.”

He added: “Birmingham Labour have no grip of their mess and no ability to fix it, hence why the final say on spending control has now been removed from the Labour political leadership.”

Downing Street said the move by the council will be “concerning” for residents.

Prime Minister Rishi Sunak’s official spokesman said: “Clearly local government is vital to our communities and we know they have been facing pressures. The government for its part has stepped in to provide support, an additional £5.1bn to councils in 23/24, which is more than a 9% increase for Birmingham City Council.

“Clearly it’s for locally elected councils to manage their own budgets, I know the department has been engaging regularly with them to that end and has expressed concern about their governance arrangements and has requested assurances from the leader of the council about the best use of taxpayers’ money.”

He acknowledged Birmingham has a “particular issue around equal pay settlements” and said ministers have “commissioned an independent governance review which will report in the coming weeks”.

“It will be concerning for the people of Birmingham and it is important that the council provide reassurance and deliver on what has been requested by the department,” he added.

Other councils which have effectively declared bankruptcy

Hackney Council issued a section 114 notice in 2000, with Northamptonshire County Council following suit in 2018.

Croydon council issued its third section 114 notice in two years in November 2022, while Thurrock in Essex took the step in December last year after it got into difficulties over borrowing large sums to invest in solar energy.

Woking also issued a section 114 in June this year due to what it said was “an extremely serious financial shortfall owing to its historic investment strategy that has resulted in unaffordable borrowing, inadequate steps to repay that borrowing and high values of irrecoverable loans”.

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MasterChef’s Gregg Wallace steps down as Kirsty Wark among 13 who claim he made inappropriate sexual jokes

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MasterChef's Gregg Wallace steps down as Kirsty Wark among 13 who claim he made inappropriate sexual jokes

MasterChef host Gregg Wallace has stepped down over allegations he made a series of inappropriate sexual comments on a range of programmes over 17 years.

Broadcaster Kirsty Wark is among 13 people who have made claims, with Wallace being investigated by MasterChef’s production company Banijay UK.

In an interview with the BBC, the Newsnight presenter, who was a celebrity contestant on MasterChef in 2011, claimed Wallace used “sexualised language”.

“There were two occasions in particular where he used sexualised language in front of a number of people and it wasn’t as if it was anyone engaged with this,” Wark said.

“It was completely one-way traffic. I think people were uncomfortable and something that I really didn’t expect to happen.”

Sky News has contacted Wallace’s representative for comment.

Kirsty Wark arriving at the BAFTA Scotland Awards at DoubleTree by Hilton Glasgow Central. Picture date: Sunday November 17, 2024.
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Kirsty Wark. File pic: PA

‘Fully cooperating’

Banijay UK said the complaints were made to the BBC this week by “individuals in relation to historical allegations of misconduct while working with Gregg Wallace on one of our shows”.

The company said the 60-year-old, who has been a co-presenter and judge of the popular cooking show since 2005, was “committed to fully cooperating throughout the process”.

“Whilst these complainants have not raised the allegations directly with our show producers or parent company Banijay UK, we feel that it is appropriate to conduct an immediate, external review to fully and impartially investigate,” the company said.

“While this review is under way, Gregg Wallace will be stepping away from his role on MasterChef and is committed to fully co-operating throughout the process.

“Banijay UK’s duty of care to staff is always a priority and our expectations regarding behaviour are made clear to both cast and crew on all productions, with multiple ways of raising concerns, including anonymously, clearly promoted on set.

“Whilst these are historical allegations, incidences brought to our attention where these expectations are not met, are thoroughly investigated and addressed appropriately.”

A BBC spokesman said: “We take any issues that are raised with us seriously and we have robust processes in place to deal with them.

“We are always clear that any behaviour which falls below the standards expected by the BBC will not be tolerated.

“Where an individual is contracted directly by an external production company we share any complaints or concerns with that company and we will always support them when addressing them.”

Previous investigation

Last month, Wallace responded to reports that a previous BBC review had found he could continue working at the corporation following reports of an alleged incident in 2018 when he appeared on Impossible Celebrities.

Wallace said those claims had been investigated “promptly” at the time and said he had not said “anything sexual” while appearing on the game show more than half a decade ago.

In an Instagram post following an article in The Sun newspaper, he wrote: “The story that’s hitting the newspapers was investigated promptly when it happened six years ago by the BBC.

“And the outcome of that was that I hadn’t said anything sexual. I’ll need to repeat this again. I didn’t say anything sexual.”

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Alongside MasterChef, Wallace presented Inside The Factory for BBC Two from 2015.

Wallace and Anne-Marie Sterpini in 2014
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Wallace and Anne-Marie Sterpini in 2014. Pic: PA

Wallace has featured on various BBC shows over the years, including Saturday Kitchen, Eat Well For Less, Supermarket Secrets, Celebrity MasterChef and MasterChef: The Professionals, as well as being a Strictly Come Dancing contestant in 2014.

He was made an MBE for services to food and charity last year.

Recorded episodes of MasterChef: The Professionals featuring Wallace will be transmitted as planned, the PA news agency understands.

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Every pensioner in Scotland to receive winter fuel payment next year

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Every pensioner in Scotland to receive winter fuel payment next year

The Scottish government has announced that all pensioners in Scotland will receive a winter fuel payment in 2025/26.

The devolved benefit is expected to come into force by next winter and will help the estimated 900,000 people north of the border who were cut off from accessing the winter fuel payment which used to be universal.

Social Justice Secretary Shirley-Anne Somerville announced the news in a statement to the Scottish parliament on Thursday.

It comes after both the UK and Scottish governments earlier this year axed the universal winter fuel payment, except for those in receipt of pension credit or other means-tested benefits.

At Westminster, Chancellor Rachel Reeves claimed the decision was made due to financial woes inherited from the previous Conservative government.

Ms Reeves said the restriction would save the Treasury around £1.4bn this financial year.

The decision led to the Scottish government – which was due to take control over a similar payment through the devolved Social Security Scotland but has since announced a delay – to follow suit.

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The payment is a devolved matter in Scotland and Northern Ireland, however the SNP government said Labour’s approach would cause up to a £160m cut to Scottish funding in 2024-25.

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Officers investigated over death of teenager with autism who escaped police car on M5

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Officers investigated over death of teenager with autism who escaped police car on M5

Two police officers have been served with misconduct notices after a teenager with autism escaped from a police car and died on the M5.

Tamzin Hall, from Wellington, was hit by a car on the M5 between junction 25 at Taunton and 24 at Bridgwater shortly after 11pm on 11 November and sustained fatal injuries.

She had been under arrest at the time and was travelling in an Avon and Somerset Police car which had stopped on the motorway, an inquest at Wells Town Hall heard on Tuesday.

Tamzin was being taken to custody when officers pulled over for “safety reasons”, the Independent Office for Police Conduct said.

She had been handcuffed with her hands in front of her and had an officer sat beside her, the IOPC added.

She fled the stationary marked police car on the northbound carriageway and died after she was hit by a car on the southbound carriageway.

In a statement the IOPC said the two officers from Avon and Somerset Police had been served misconduct notices for a “potential breach of their duties and responsibilities”.

Such notices advise officers their conduct is subject to an investigation, but does not necessarily mean any disciplinary proceedings will follow.

IOPC regional director David Ford said: “My thoughts and sympathies remain with Tamzin’s family and friends, and everyone affected by the tragic events of that evening.

“We have met with Tamzin’s family to offer our condolences and to outline how our investigation will progress. We will provide them with regular updates as our inquiries continue.

“Our investigation is in the early stages and we are working hard to establish the exact circumstances of what took place, from the time of Tamzin’s arrest, to how events unfolded a short time later on the M5.”

The IOPC began its investigation earlier this month and is looking into what contact the police had with Tamzin prior to her death, including their actions, decision-making and risk assessments of the situation, and whether these followed the relevant training and policies.

Read more from Sky News:
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Mother pays tribute to ‘very special’ daughter

Speaking after the hearing on Tuesday, Tamzin’s mother Amy Hall paid tribute to her “very special” daughter, who she said had been diagnosed with autism spectrum disorder.

“Tamzin was the most kindest, caring, loving, loyal girl ever. She was the most honest person I’ve ever known; she was very special to me,” she said.

“She had a great sense of humour, and we had many laughs together.”

She added: “Tamzin was diagnosed with autism spectrum disorder, so she was unique and saw the world in such a different way.

“Tamzin was my absolute everything and I can’t believe she isn’t here any more. She was my world.”

She said: “She was only 17 but she has taught me a lot and I can use that memory and hold on to that.

“I will never ever get over it, she was taken far too young.”

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