However, the council said that when the section 114 notice was issued it faced an £87m budget shortfall and had not at that point secured government approval to cover equal pay liability through borrowing or asset sales.
According to the council Carol Culley, executive director of finance, said that most chief finance officers would likely have taken the same decision based on the information available at the time.
Cotton said: “Under my leadership this council has taken the tough decisions and decisive action required to return to the mainstream of local government.”
An MHCLG spokesperson said: “Birmingham City Council has made progress on its reform and recovery, but challenges remain, which is why commissioners continue to support the council to deliver for local people.”
Political reporter for BBC WM, Kathryn Stanczyszyn, said questions over the financial workings out of Birmingham’s ‘bankruptcy’ hade been rumbling for some time.
“A figure of £760m was originally placed on the prospect of equal pay settlements, a significant part of the reason for the emergency intervention and subsequent cuts,” she said.
“Now that deal has been done with female workers – but the council has not yet revealed what the bill will be.”
