Nottingham city council has issued a section 114 notice, in effect declaring itself bankrupt, as experts warn an increasing number of councils are “reaching breaking point”.
In an announcement on Wednesday, the local authority said it had a significant gap in its budget and the council’s chief financial officer had decided it was not able to produce a balanced budget for this year.
The Labour-run council attributed its financial problems to issues affecting councils across the country, including an increased demand for children and adults’ social care, rising homelessness presentations and the impact of inflation.
It also acknowledged previous issues relating to financial governance and an overspend in the past financial year had…
