'Bankrupt' Nottingham City Council seeks £65m of emergency help

Nottingham City Council has asked the government for £65m of "exceptional financial support".

The authority effectively declared itself bankrupt in November when it issued a section 114 notice.

It faces a £23m budget shortfall for the current financial year, and a separate £53m gap for the year beginning April 2024.

The council has asked the government for the emergency help for both financial years.

It has asked the Department of Levelling Up, Housing and Communities (DLUHC) for £25m this financial year and up to £40m next year.

Details of the application for funding were revealed in a presentation at a council meeting on Monday.

The Local Democracy Reporting Service (LDRS) said the council officials believe the funding will only be provided if the authority implements the full £14.9m its is proposing in cuts - including those to libraries, road sweeping and community protection.

The LDRS also said any support would likely be in the form of loans and special permission to raise money from council assets and spend it on day-to-day operational costs, rather than a grant.

Steve Battlemuch, the council's portfolio holder for skills, growth, economic development and property, said the authority was waiting for a government response.

He said: "We do need an answer sooner rather than later. The budget is due in February.

"There are a number of factors to be confirmed which we can't finalise until we get an answer.

"The implication from government is that the council will only get money if we accept all of the proposed cuts."

The government is currently reviewing all steps the council is taking to close its budget gap and previously said it is "minded-to" appoint commissioners to take charge.

The DLUHC has been contacted for comment.

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