[ad_1]
- By Gavin Bevis
- BBC News, East Midlands
Nottingham City Council made the announcement on Wednesday
Nottingham City Council has declared itself effectively bankrupt, meaning it will stop all spending other than services it must provide by law.
A recent report said the Labour-run council was set for a £23m overspend in the 2023-24 financial year.
The council’s chief finance officer said the authority was unable to deliver a balanced budget.
The officer has issued a report under section 114 of the Local Government Finance Act 1988.
The authority cited increased demand for children’s and adults’ social care, rising homelessness and the impact of inflation as putting extra pressure on its finances.
In addition it said “past issues relating to financial governance which led to the appointment of an Improvement and Assurance Board” twinned with an overspend in the last financial year have also impacted on the it “financial resilience” and ability to draw on reserves.
Image source, Gerry Molumby
The council has pledged to keep people in Nottingham updated on the situation
A meeting is due to take place within the next 21 days to discuss the situation and the authority said a dedicated page on its website would provide updates.
The council said in a statement: “Senior officers and members remain committed to continuing to work with the Improvement and Assurance Board and the Department for Levelling Up, Housing and Communities to put the council on a stable financial footing for the future.”
Analysis
By Hugh Casswell, BBC Nottingham political reporter
Put bluntly, this doesn’t come as any great surprise.
Nottingham City Council has been grappling with multimillion-pound budget gaps for years, and announcing cuts to services has become an annual event.
Inflation and rising demand for services is common of all councils, but what sets Nottingham apart is those high-profile blunders.
They’ve been acknowledged. They’ve been apologised for. But they have a lasting impact, not least in terms of how much the council has in its reserves.
[ad_2]
Source link