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…