Why Nottingham and Birmingham will be followed by more cities running out of money

Murphy, P. ORCID: 0000-0001-8459-4448, 2023. Why Nottingham and Birmingham will be followed by more cities running out of money. The Conversation.

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Abstract

Almost a fifth of England’s council bosses have warned they are running out of money so badly that they will become effectively bankrupt this year or next. Some councils have already run out of funds. Nottingham and Birmingham councils were the latest to issue what are known as “section 114 notices”. These notices mean a council’s expected income is not enough to cover what it plans to spend – and that it cannot find a solution by itself.
And while councils cannot actually go bankrupt in the same way that a person or private business can, the act of issuing a section 114 is a very serious issue. It means all spending, other than providing statutory services such as adult and children’s social services, is immediately suspended. This means no money for new contracts or projects on transport, waste, planning, leisure or culture.
As a result, the council is placed into a relationship with the government which is something more akin to a company going into administration. The organisation is effectively led and managed by commissioners appointed by the government.

Item Type:	Newspaper or popular journal contribution
Publication Title:	The Conversation
Creators:	Murphy, P.
Publisher:	The Conversation Trust (UK) Limited
Date:	13 December 2023
Identifiers:	Number Type 1845147 Other
Divisions:	Schools > Nottingham Business School
Record created by:	Jonathan Gallacher
Date Added:	18 Dec 2023 10:39
Last Modified:	18 Dec 2023 10:39
URI:	https://irep.ntu.ac.uk/id/eprint/50557

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