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Birmingham City Council has declared itself effectively bankrupt.

The local authority - the largest in Europe - has issued a Section 114 notice preventing all but essential spending to protect core services.

The pressures have been linked to a 拢760m bill to settle equal pay claims.

In a joint statement, the leader and deputy leader of the Labour authority said the move was a "necessary step as we seek to get our city back on a sound financial footing".

A Section 114 notice, issued in the past by councils including Croydon and Thurrock, means a local authority has judged itself to be in financial distress and can no longer balance its budget.