Auditor Faces Questions Over Birmingham’s Bankruptcy Math

The UK’s accounting watchdog should examine the role played by a top auditor of local authorities in the lead-up to Birmingham’s bankruptcy declaration, a professor who has studied the council’s finances said.

Birmingham was one of three local councils in England that issued a notice effectively declaring bankruptcy in 2023. The notice was based on over-spending and a large potential financial liability stemming from legal claims that the 101-member council didn’t pay women as much as men.

The council’s long-time auditor—Grant Thornton—cited information about the pay claims’ cost that didn’t match the council’s published accounts, contributing to a perceived liability ...