Nottingham City Council has declared itself as being effectively bankrupt
The council is expected to overspend by £23million next year
Grace CampbellNottingham City Council has declared itself as effectively bankrupt, issuing a statement that its chief financial officer felt it “isn’t able to deliver a balanced budget for this year, which is a legal requirement”.
Having issued a section 114 notice, the Labour-run authority must now immediately stop all spending which is not related to protecting vulnerable people and statutory services, reports Sky News.
Nottingham is the second city this year whose council has declared bankruptcy, with Birmingham City Council doing the same in September.
It is forecast to have an overspend of £23million in the 23-24 financial year, with increased demand adult’s and children’s social care being the main cause of the overspend, along with homelessness and inflation. This decision could cause serious cuts and higher costs for people who use the council’s services.
Labour councillor Linda Woodings has said that the council is “drowning” after “12 years of austerity”.
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