GMB union demands transparency from Birmingham City Council amid huge £760m equal pay bill

The local authority has been hit with a bill of between £650m and £760m for its equal pay liability, and announced on Wednesday it intends to introduce a raft of governance measures to tackle it.

In an effort to get a grip on its financial situation, the council announced that "mandatory spending restrictions" will be implemented, with "non-essential spending" to cease with "immediate effect".

In a statement made to the council website, Birmingham City Council leader Councillor John Cotton said: "I've been clear from day one that I will take whatever action is needed to address the substantial challenges facing the council and these measures are essential to grip the situation – particularly in terms of financial controls, organisational capacity and improved governance.

"We will be open and transparent throughout this process and the independent reviews and judge-led inquiry will ensure that there is proper accountability for these failings."

Birmingham City Council deputy leader, Councillor Sharon Thompson added: "This is one of the biggest challenges this council has ever faced, and we must understand how the issues have arisen to prevent a repeat in the future.

"Given the scale of this challenge, we must impose mandatory spending restrictions. But as we have done throughout the cost of living crisis, we will continue to focus on tackling social injustice and inequality across our city. We will do everything we can to protect the services our residents rely on."

But the GMB union has today slammed the council's response and claims members were not consulted prior to the announcement.

Michelle McCrossen, GMB organiser, said: "Accepting the council's equal pay liability is only the first step on the road to fixing pay discrimination at the council.

"Our members have faced unacceptable delays and distraction for too long – it's time for the council to take action.

"It's right that the city council take serious steps to address its own shortcomings, but reviews cannot be used to kick a solution into the long grass.

"Our members were not consulted on today's announcement and there is the real risk of history repeating itself if unions are cut out of the process to find solutions to the council's failings.

"Let’s be clear - GMB is currently engaged in a legal process pursuing the council for equal pay compensation.

"The council’s legal defence has been absolutely obliterated by the chief executive’s admission that they owe up to £760 million. Yet we’ve heard nothing as to how they intend to fix the mess they’ve created.

"The council should start by being transparent on how they’ve calculated the £760 million liability, and then work with GMB on a route-map to delivering equal pay, once and for all.

"The council’s liability is growing, and GMB members won’t be made to wait for pay justice."