Whistleblowers fear £760m equal pay liability bill could be hugely overstated, as IT problems leave finances in disarray

A £760m equal pay liability bill at Birmingham city council, which led it to effectively declare bankruptcy and make a swathe of drastic budget cuts, could be hugely overstated, councillors, researchers and whistleblowers have said.

Sources inside the Labour-led council said the local authority’s finances were in disarray as a result of a faulty IT system rollout and with no accurate accounts for the past two years there was no way of knowing exactly how the council’s budget stacked up.

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