Government of Birmingham, UK’s second largest city, declares bankruptcy

The local time September 05th, , Birmingham city council, the second largest city in the UK, declares itself effectively bankrupt. The city will stop all new spending, except for mandated services like protecting vulnerable populations.
According to British media reports, the main reason for the collapse of Birmingham City Council is the increase in social care spending, the reduction of corporate taxation and high inflation, and the direct cause is related to the £760 million(equivalent to 6.84 billion yuan) bill to settle equal pay claims.
According to the UK 1988 << Local Government Finance Act >>, if the chief financial officer of Birmingham City Council believes that the authority cannot make ends meet, it means that the council is “effectively bankrupt”.Next Birmingham council must meet within 21 days to discuss follow-up issues. In addition, no new spending will be permitted except for statutory services to protect vulnerable groups, but existing commitments and contracts will continue to be honored.