Council set to be given back full financial control

The government intervention at Nottingham City Council, which began after it effectively declared bankruptcy, is set to be scaled back.

The Labour-run authority declared it could not balance its budget in 2023, and the government sent in commissioners to oversee changes.

On Wednesday it was revealed those commissioners believe they could leave later this month, as planned, saying progress has been made.

The government plans to replace them with "ministerial envoys" who have fewer powers but would stay to advise the council, because it believes work is still needed.

The commissioners were sent in in February 2024 in a bid to speed up improvements after the council issued a section 114 notice, amid an in-year budget gap of £23m.

It came after high-profile financial failings, including the collapse of Robin Hood Energy, which is believed to have cost taxpayers about £38m.

The commissioners have the power to make decisions for the council, and were appointed to make sure improvements to medium and long-term financial sustainability were made.

In their latest report, released on Wednesday, they said the council has made "much progress" addressing "what were significant challenges" since 2024.

But they added: "Given the short time period of the intervention, many of the changes made have not yet had time to mature or embed and some actions are still a work in progress."

The response of the Secretary of State Secretary for Housing, Communities and Local Government, Steve Reed, was published the same day.

He said he was "very encouraged" by the progress, and was satisfied the council could carry on making improvements.

But added he "considers that the council is not yet meeting its duty in two themes: Continuous Improvement and Service Delivery".

That means the government would "provide a further but reduced package of statutory support to the Council for 18 months, to be reviewed after 12".

Reed is considering appointing two "ministerial envoys" who would oversee a committee to advise the council, and report back every six months.

These envoys would not have the same decision-making powers as the commissioners.

A final decision has not yet been made and he has asked the council for its views.

Council leader Neghat Khan, said: "When I became leader in 2024, I made a promise to get our house in order, and we've done that.

"Our finances are stable, we're balancing our budget without a penny of Exceptional Financial Support, and we've reduced our debt by 64%.

"Whilst we know that there is more to do and we must not be complacent in leading Nottingham forward, our focus now must be on delivering continuous improvement for Nottingham and our residents."

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