Nottingham City Council Announces Effective Bankruptcy

Published on November 30, 2023

Another Labour-run local authority—Nottingham City Council—has declared itself effectively bankrupt due to a budget imbalance in the 2023/2024 financial year. It comes two months after the Birmingham City Council issued a Section 114 notice after it failed to settle a £760 million bill on equal pay claims. Like Birmingham City Council, the Nottingham local authority is Labour-run, including 50 Labour councillors and five councillors from other parties. The council leader David Mellen, issued a statement on Wednesday, citing the “combination of Conservative austerity, out of control inflation and rising demand in social care” as reasons for issuing the 114 notice. According to the council’s chief finance officer, the authority was set for a £23 million overspend in the 2023/2024 financial year....

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