Nottingham City Council wrongful spend total passes £50m mark

Nottingham City Council's finances are being examined by a government inspector

The wrongful spending of money meant for Nottingham City Council's housing and its tenants now totals up to £51m.

In 2021 the Labour-run authority issued a legal notice after nearly £16m of Housing Revenue Account (HRA) funds was unlawfully spent.

Ringfenced funds had been transferred to the council's general fund, which finances other services, over a series of years.

With inflation, the cost of the repayments now totals £49m to £51m.

This is an increase from the previous figure of £40m.

The Local Democracy Reporting Service said the new figures were highlighted during a scrutiny committee meeting at Loxley House on Wednesday, where the budget and medium-term financial plan was discussed.

The council faces a £32m black hole in the 2023-24 financial year, with proposed savings of £29m including a council tax rise of 5%, cutting 110 jobs and changing adult social care.

Clive Heaphy, the outgoing director of finance, said £38m had already been set aside to deal with the failure of Robin Hood Energy, with about £27m of council reserves paid back into the HRA and "another £4m to go".

"The total cost of the HRA repayments is going to be in the order of £50m, £49 to £51m, that kind of order," he said.