Nottingham: Commissioners brought in to help run 'bankrupt' council

nottingham:-commissioners-brought-in-to-help-run-'bankrupt'-council
Nottingham: Commissioners brought in to help run 'bankrupt' council

The United Kingdom government has named commissioners to aid with the management of Nottingham City Council after the council declared effective bankruptcy. The government-appointed board has overseen changes to the council since Robin Hood Energy, a council firm, collapsed three years ago. The council requested help from the government for “exceptional financial support” by combining loans and permission to spend money on day-to-day costs. The council has been overseen by an improvement and assurance board from the government since early 2021 due to financial difficulties.

Local government minister Simon Hoare believes Nottingham City Council is continuing to fail to comply with its Best Value Duty, and the necessary improvements were not being made quickly enough. The council cited reasons for its financial difficulties, including reduced government aid, increased demand for social care, and rising homelessness presentations. The commissioners will work with the council’s existing structure, officers, elected officials, and the leader, David Mellen. The commissioners are granted extensive powers, such as overseeing the full range of the council’s improvement activities, including strategies to ensure the medium and long-term financial sustainability of the council and transform front-line services.

Mr. Hoare stated that the commissioners are appointed for two years, though the duration could change, and three commissioners would be appointed, which will consist of a lead commissioner, finance commissioner, and transformation commissioner. The commissioners are expected to provide their first report to the government within the next six months, with further reports every six months. Other cash-strapped councils, such as Liverpool and Birmingham, have been subjected to similar oversight. The commissioners will be funded by the Nottingham City Council at an estimated £650,000 per year.

While it remains to be seen if transferring the power to make decisions away from elected officials will ultimately change things, sweeping cuts have already been proposed. Doubts persist on the extent of potential changes in the short-term. The commissioners will most likely prioritize the bottom line over other considerations with decisions now made. Though both arguments on the council’s financial difficulties, the cuts from central government and the council’s costly mistakes, are true, one must keep in mind that both can happen simultaneously

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