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Nottingham City Council declares itself 'bankrupt' with £23m funding gap
29 November 2023, 15:09
Nottingham City Council has declared itself effectively bankrupt after being beset by years of financial trouble.
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All council spending other than services it must provide by law will be stopped.
The local authority confirmed the situation today, saying 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 from Nottingham City Council said that "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".
But, it added: "Past issues relating to financial governance... and an overspend in the last financial year have also impacted on the council's financial resilience and ability to draw on reserves."
The authority said increased demand for children's and adults' social care, rising homelessness and the impact of inflation had put pressure on its finances.
The council said in a statement: "Senior officers and members remain committed to continuing to work with the Improvement and Assurance Board and the Department for Levelling Up, Housing and Communities to put the council on a stable financial footing for the future."
The council says that its budget for the current financial year has a gap of around £23 million.