Nottingham Castle: New details emerge about pre-closure finances

Details have emerged about the finances of Nottingham Castle, after the trust that ran it went into liquidation.

The castle and its grounds closed to the public in November.

Following a Freedom of Information request by the BBC, it has emerged issues around the trust's performance were identified early on by Nottingham City Council, which controls the site.

The council said it had not been in a position to intervene in the trust's running.

Figures released to the BBC suggest visitor numbers at the landmark attraction failed to reach the levels of previous years, despite it undergoing a £30m renovation.

In 2016-17, the castle attracted 220,657 visitors. However, according to the trust, the total number of visits from the castle's reopening in June 2021 to September 2022 were 205,000.

The council said it had been unable to verify this data.

The attraction faced a number of lukewarm reviews and complaints over cost - a family ticket to all areas was more than £50.

It was brought back under the control of the council after Nottingham Castle Trust went into liquidation 18 months after the renovation.

Following the castle's closure, the council said it had loaned the trust £1.9m and was owed a further £821,000 for services it had provided.

The council said it had undertaken interventions to try to help the company stabilise, by providing loans, allowing default payments and helping the trust to secure funding from other organisations.

It said that in January 2022, the trust had outlined concerns about its financial position and asked the council for an abatement on charges for services it provided to the trust.

Despite this, in March 2022, it was agreed the payment due to the council could be paid at a later date, up to a total of £250,000.

It said that in September 2022, a formal notice of financial distress had been issued by the trust to the council.

It had submitted a business recovery plan to the authority which had included a request for a further loan of £500,000, as well as a request to defer payments due to the council and a review of repayment terms of the loan, as well as support for grant funding from the National Lottery Heritage Fund.

"Unfortunately this didn't give us the reassurance needed, instead confirming that without further significant financial intervention, the trust would shortly run out of cash in the bank," the council said, in a statement.

"As a council with a duty to provide best value to local taxpayers, we could not continue to provide financial support when there is no prospect of a financial return."

The council has faced criticism over its failure to give a date as to when the castle might reopen.

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