Nottingham city council issues notice in effect declaring itself bankrupt
Nottingham city council has issued a section 114 notice, in effect declaring itself bankrupt.
In an announcement on Wednesday, the local authority said its chief financial officer had decided it “isn’t able to deliver a balanced budget for this year, which is a legal requirement”.
A statement said: “A significant gap remains in the authority’s budget, due to issues affecting councils across the country, including an increased demand for children’s and adults’ social care, rising homelessness presentations and the impact of inflation.”
A section 114 notice means all spending, apart from on protecting vulnerable people and delivering statutory services, will be suspended.
It follows Birmingham city council issuing a section 114 notice in September due to financial issues compounded by a spiralling equal pay bill and failed IT implementation.
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