Government commissioners could be in place at Nottingham City Council 'within days'

The Improvement and Assurance Board (IAB) already overseeing critical changes at the authority has said the extra intervention could arrive by ‘early February’.

The Department for Levelling Up, Housing and Communities said back in December it was ‘minded to’ appoint commissioners to speed up improvements at the Labour-run authority.

The council has formally appealed against the decision.

The threat of Government commissioners followed the council issuing of a Section 114 notice in November, where it effectively declared bankruptcy, amid an in-year budget gap of £23m.

A separate budget gap, totalling £53m, for the year beginning April 2024, has also led to plans for a series of sweeping cuts to youth services, funding for community organisations, and public transport infrastructure.

Extra financial support, for £25m for the current year and up to £40m for the next, has also been requested as an emergency response to the situation.

The IAB, appointed three years ago by the Government upon the collapse of council-run Robin Hood Energy, has now issued a series of new instructions as of January 31.

They seek to ‘maximise the number of savings options brought forward as part of the budget-setting process in order to minimise the amount required by the council in exceptional financial support from Government’.

In its instructions, the improvement board said: “The linked ‘minded to’ decision by Government to appoint commissioners possibly by early February, if the decision is confirmed, coincides with a critical period for the council in its financial planning leading up to the budget-setting meeting on February 26.

“In these circumstances the IAB have decided there is a need for IAB expectations to be absolutely clear to the council leadership in the period up to this and to assist smooth transition to commissioners during that period is if that comes to pass.

“Depending on the precise appointment date of commissioners, if the ‘minded to’ decision is confirmed, the IAB if still in place may decide to issue further instructions in relation to management of the budget setting council meeting.”

Significant financial pressures have been put down to reduced Government funding and soaring demand and costs for social care and homelessness services.

The collapse of Robin Hood Energy and unlawful spending from its Housing Revenue Account also left reserves depleted.

The new instructions from the IAB come as opposition to further intervention mounts.

A new petition is now calling on the Levelling Up Secretary, Michael Gove, to adequately fund vital services.

The petition, organised by a group called ‘Resolve’, says: “Despite the 5,000-plus responses to the budget consultation, we understand it is likely that the Government will hand down these service cuts as a condition of any financial assistance, undermining our local democratic processes.

“We call on the Government to provide immediate no-strings financial assistance to enable the council.”

One of the organisers is LeftLion partnerships manager Adam Pickering.

He added: “Facing the threat of unelected commissioners running our city, we call on the Government to properly fund our services and listen to local people.”

The Government says it recently awarded councils across England a £600m additional support package.

It will ‘primarily see an additional £500m added to bolster social care budgets – a key concern raised by councils’.