Nottingham City Council has fully accepted the findings of a rapid review carried out on behalf of the Ministry of Housing, Communities and Local Government.
However, the Council’s Leader has made clear that the authority is not on the verge of bankruptcy.
Councillor David Mellen said: “The report does not use the word ‘bankruptcy’. It does highlight that the Council needs to make savings in order resolve our very difficult budget situation and we are currently developing budget proposals in order to meet that challenge.”
Nottingham City Council has fully accepted the findings of a rapid review carried out on behalf of the Ministry of Housing, Communities and Local Government.
The non-statutory review led by Max Caller focused on issues identified in a recent Public Interest Report on the council’s governance of Robin Hood Energy, the not-for-profit company it set up to tackle fuel poverty in the city.
The report has not yet been formally published and is currently with the Local Government Secretary for consideration.
Leader of the council, Councillor David Mellen, said: “We have been working closely with Max Caller and his team over the last few weeks as they have carried out the review. We fully accept the findings and remain committed to making the improvements needed to ensure we are the best we possibly can be as a council.
“The review clearly raises serious issues around financial management and governance that need to be addressed urgently.
“It highlights that we have been slow to act on warnings about the risk of relying on one-off savings and income through commercialisation and that we should have been managing budgets on a longer term basis to reduce core expenditure and transform services.
“The council’s capital expenditure and high levels of debt compared to other cities is also flagged up as a major concern with the cost of borrowing restricting our flexibility on day-to-day spending.”
Mel Barrett, the council’s Chief Executive who joined the authority in September, said: “The review team said it was impressed with the determination of the council’s leadership to stabilise the current situation and take the necessary decisions to bring about improvement.
“We hope and believe this demonstrates confidence that we can deliver the changes needed, building on the work we have already begun following the publication of the Public Interest Report in the summer. “