Britain’s second-biggest city Birmingham effectively declared itself bankrupt on Tuesday as it doesn’t have enough funds to pay £760 million ($954 million) in equal pay claims to female government employees who were paid less than their male counterparts in the past.

Birmingham City Council filed a Section 114 notice on Tuesday, halting all spending except on essential services. A section 114 notice means that Birmingham City Council, which is ruled by the Labour Party, will stop all new spending, with the exception of protecting vulnerable people and statutory services.

The deficit arose due to difficulties paying between £650 million (around $816 million) and £760 million (around $954 million) in equal pay claims, the notice report states.

A Birmingham City Council spokesperson said, “Birmingham City Council has issued a 114 notice as part of the plans to meet the council’s financial liabilities relating to equal pay claims and an in-year financial gap within its budget which currently stands in the region of £87m”.

“In June, the council announced it had a potential liability relating to equal pay claims in the region of £650m to £760m, with an ongoing liability accruing at a rate of £5m to £14m per month. The council is still in a position where it must fund the equal pay liability that has accrued to date (in the region of £650m to £760m), but it does not have the resources to do so,” the spokesperson added.

Sharon Thompson, deputy leader of the council, told councilors on Tuesday it faces “longstanding issues, including the council’s historic equal pay liability concerns”.

In June, the council revealed it had paid almost £1.1bn in equal pay claims in the last 10 years.