Sunak denies government blame for Nottingham City Council cash woes

Rishi Sunak spoke to reporters about the city council's finances during a visit to Nottinghamshire this week

Rishi Sunak has denied the government is to blame for Nottingham City Council's financial crisis.

During a visit to Nottinghamshire on Thursday, Mr Sunak said the council's current plight was due to "a series of poor decisions" it had made.

The Labour-run council declared itself effectively bankrupt in November by issuing a section 114 notice.

Council leader David Mellen insisted government cuts to council funding had caused "chaos".

Council leader David Mellen said government cuts had pushed councils to breaking point

The Conservative prime minister cited the collapse of the council-run Robin Hood Energy company, at a cost of £38m to taxpayers, as an example of how the council had "let its residents down".

Mr Sunak said: "This is down, pure and simple, to local mismanagement by the Labour-run council and actually what they should do is just take responsibility for that rather than try to blame everyone else."

Mr Mellen said the prime minister was "totally wide of the mark".

"Robin Hood Energy was closed by the council three years ago," he added.

"We have dealt with the consequences but this government continues to cause chaos.

"The reduction of funding from government, £100m less every year since 2013 in the case of Nottingham city, combined with rising costs of adults and children's social care is pushing local services to breaking point."

Mr Sunak did not confirm if commissioners would be appointed to run the city council

A decision on whether or not the government will appoint commissioners to take over running large parts of the council is expected in the coming weeks, after ministers said they were "minded to" intervene in December.

Commissioners would have the power to make significant cuts to services and save money.

The council has formally appealed against further intervention, arguing it would be harmful to democracy in the city.

Mr Sunak neither confirmed nor denied whether commissioners would be appointed, but said: "There's a well established process for resolving situations like this that involves independent external commissioners being sent."