The government has appointed commissioners to help run Nottingham City Council after the authority declared itself effectively bankrupt.
Now ministers have intervened further in a bid to speed up improvements.
In a statement, local government minister Simon Hoare said: “The Secretary of State is satisfied that Nottingham City Council is continuing to fail to comply with its Best Value Duty, and that the necessary improvements are still not being made quickly enough.
“I am today confirming that commissioners have been appointed to Nottingham City Council and new directions have been issued.”