Birmingham City Council is due to settle thousands of equal pay claims more than a year after it effectively announced bankruptcy. Employees of the local authority and Birmingham Children's Trust will have their claims settled but the full terms of the agreement will be confidential.

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Council leader John Cotton said the agreement would mark the start of a new era of productive and progressive industrial relations in the city.

The Labour-run council declared itself effectively bankrupt in September last year after identifying hundreds of millions of pounds worth of equal pay liabilities

Birmingham City Council has reached a historic legal agreement with trade unions to settle an equal pay claim, marking a significant step towards pay equity.

Bankrupt Birmingham City Council has reached an agreement over an equal pay dispute that left the authority an estimated £760m bill.