Displaying items by tag: public spending

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

In August, high inflation led to increased government finances, creating pressure on Chancellor Jeremy Hunt to boost support for state services, according to the Resolution Foundation. Government borrowing for August was £11.6 billion and nearly £70 billion for the first five months of the current fiscal year. This left the Chancellor £11.4 billion better off for 2023-24 than March's official forecasts had predicted. The Resolution Foundation noted that while higher inflation had led to increased tax payments, it had strained public services with pre-inflation budget allocations, making future public service cuts less tenable. Conservative backbenchers have opposed increasing department budgets in favour of tax cuts, while former prime minister Liz Truss has advocated tax cuts to stimulate economic growth. The borrowing figures highlight the need to manage inflation and government finances.