Fixing finances harder than expected - city leader

Neghat Khan took over at Nottingham City Council in May

The leader of Nottingham City Council has said turning the authority around is a bigger challenge than she first thought.

Neghat Khan took over at the struggling council in May, six months after it issued a section 114 notice - effectively declaring itself bankrupt.

Speaking to BBC News, Ms Khan said increasing demand for services meant gaps in the council’s budget had continued to grow.

“You hear about the challenges, being a councillor for 10 years, but actually it’s only when you’re in the hot seat you look at the figures you have access to and realise the demand is not slowing down,” she said.

Nottingham City Council issued a section 114 notice last November

The latest figures show the council is facing a budget gap of £69m in the 2025/26 financial year, and a total gap of £172m over the next three years.

Ms Khan said she wanted to avoid issuing another section 114 notice “at all costs” but that it would require “radical change” in how services are delivered.

“We’re trying our best to balance the budget and come up with proposals. We’re not just salami slicing any more because we can’t,” she said.

The Labour council leader was pictured alongside Chancellor Rachel Reeves at the party’s recent conference in Liverpool.

In a post on X, she said she had made the case for “equitable funding for councils”.

Asked why she had not asked for more funding, Ms Khan said changes had to be "sustainable".

"One-offs aren’t going to fix the situation for us. We need continued support with other local authorities," she said.

She said Nottingham’s bonfire night celebration was an example of non-essential spending which the council could not commit to and she thought it may never be held again.

The previously annual event at the Forest Recreation Ground has been cancelled for the last five years in a row, which Ms Khan said was due to the council’s ambition to be carbon neutral by 2028, as well as the cost.

"If we’re saying our most vulnerable people are struggling, well then should we be spending money on Bonfire Night?" she added.

You can see more of the interview with Neghat Khan on Politics East Midlands on Sunday at 10am on BBC One, or on BBC iPlayer.