Displaying items by tag: council bankruptcy

Nottingham City Council has effectively declared bankruptcy by issuing a Section 114 notice, indicating it cannot cover its expenses within the current financial year. The notice does not affect the council's ability to deliver statutory services such as waste collection and child safeguarding. Despite attempts to bridge a budget gap, which stood at £26 million in July and has since narrowed to around £23 million, the council's struggles persist. These financial woes have been attributed to significant central government funding cuts of more than 40% since 2010. Three Labour MPs representing Nottingham have criticised the Government for these cuts and urged it to provide adequate funding to support local services, especially given the rising demands for social care and homelessness services. They emphasised the need to shield residents from further cuts to local services amidst declining living standards. This news comes two months after Birmingham declared itself bankrupt: see