Plan for government intervention at 'bankrupt' Nottingham City Council

It comes after a section 114 notice was issued by the authority's chief finance officer

Commissioners could be brought in to intervene in the running of "bankrupt" Nottingham City Council, the government has said.

The move would remove power from the elected councillors and place it in the hands of a board of officials.

It comes as the Labour-run council's chief finance officer issued a section 114 notice over a £23m in-year budget gap.

It has until 2 January to make its case.

Caps on new spending at the city council have been applied and would remain in place until 2025, according to the Local Democracy Reporting Service.

In addition a report, published ahead of an executive board meeting on 19 December, further revealed the council was facing a £53m gap in its budget for the next financial year.

In response, the council proposed a raft of new cuts to services, as well as the loss of 554 jobs.

Minister for local government, Simon Hoare, confirmed on Wednesday improvements are "not being made quickly enough".

He said Michael Gove MP, Secretary of State for Levelling Up, Housing and Communities, was now "minded" to appoint commissioners to exercise certain and limited functions as required for two years.

Michael Gove was previously minded to intervene in the running of the council in June 2022

"The proposed move to the commissioner model of intervention represents a significant change to ensure that public trust in the council is restored, particularly as the council has been working with the board since it was first appointed in January 2021," Mr Hoare said.

"The secretary of state will consider carefully all representations and any other evidence received, before deciding whether to change the intervention."

Nottingham City Council leader David Mellen said the appointment of commissioners would be "very disappointing and not something that we would want to happen".

He added: "Any decision that reduces democratic accountability, however limited and temporary this may be, should not be taken lightly.

"The current situation for Nottingham and a great many other authorities is very challenging and in much part caused by underfunding.

"There will continue to be difficult decisions that have to be made, but we are committed and determined to do what is right for the city and its residents."

The government has previously threatened to intervene in the running of the council.

In June 2022, Mr Gove indicated he was minded to appoint independent commissioners in a bid to help the authority.

However, it was announced in February the council had made enough progress to avoid the move.