Adult education services at Birmingham City Council are unlikely to be affected by the authority’s strict new controls on spending, imposed after the council effectively declared bankruptcy.
City Councillors at the beleaguered local authority have been told they must agree to immediately stop all non-essential spending, reduce running costs and not commit to new expenditure.
The council faces an £87 million black hole in its budget as it struggles to settle a historic equal pay liability worth up to £760 million. As a result, officials issued a section 114 notice last week, which has widely been described as the local authority effectively declaring bankruptcy.
However, the notice does not affect pre-existing contracts.