Nottingham City Council Declares Bankruptcy Amid Financial Crisis

The council faces a £23m overspend, with increased demand for social care and rising homelessness exacerbating its financial woes.

Nottingham City Council has declared itself effectively bankrupt, issuing a section 114 notice, which means it will stop all spending other than services it must provide by law.
The council is facing a £23m overspend in the 2023-24 financial year, with increased demand for children's and adults' social care, rising homelessness, and the impact of inflation putting extra pressure on its finances.
Poor financial governance in the past and an overspend in the last financial year have also impacted the council's financial resilience and ability to draw on reserves.
The council's bankruptcy follows the financial failure of Birmingham City Council earlier this year, marking a growing trend of local authorities in England facing financial difficulties.
The Department for Levelling Up, Housing and Communities, which has been monitoring the council, expressed concern over the lack of urgency demonstrated by the council in addressing these challenges.