Nottingham City Council declares itself ‘bankrupt’ over £23m budget black hole

By Olivia Barber2023-11-30T12:06:00

Council also issued a section 114 notice two years ago when it unlawfully used housing revenue funds to support other finances

Nottingham City Council is the latest in a succession of councils to issue a section 114 notice, which will result in “reductions in service provision” the council’s chief executive has said.

In an s114 notice issued yesterday, Nottingham City Council’s chief finance officer forecasted a budget deficit of £56.9m which, after using reserves of £9.4m and other corrective actions, has been reduced to a forecast deficit of £23.4m.

In December 2021, Nottingham City Council was also forced to issue an s114 notice after unlawfully diverting funds from its housing revenue account, which contains a local council’s rental income, and its wholly owned housing company, Nottingham City Homes, into its general fund.

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