Nottingham City Council Announces Effective Bankruptcy

The council leadership cited underfunding, austerity and ‘out of control inflation’ as key reasons for issuing section 114.

Nottingham City Centre ahead of a national lockdown for England on Nov. 4, 2020. Mike Egerton/PA Media

Another Labour-run local authority—Nottingham City Council—has declared itself effectively bankrupt due to a budget imbalance in the 2023/2024 financial year.

It comes two months after the Birmingham City Council issued a Section 114 notice after it failed to settle a £760 million bill on equal pay claims.