The management of the city of Nottingham, England, officially admitted that it could not meet this year’s budget. TV channel reports on problems that threaten de facto bankruptcy Sky NewS.
On 29 November, the City Council issued a warning under Article 114 of the Local Government Code. This means that the authorities declared their financial bankruptcy.
“There is a significant gap in the authority’s budget due to issues affecting councils across the country, including increasing demand for social care for children and adults, rising homelessness and the impact of inflation,” the statement said.
An emergency meeting is planned to be held within the next three weeks to stabilize the situation. There is also a ban on new expenditures, except for socially important items.
According to media reports, the main reason for the £4 million shortfall was the failure to honor the contract with energy supplier Robin Hood Energy. The increasing costs of social support in an inflation environment of almost 5% are also effective in this.
The opposition wants the mayor of Nottingham to resign. At the same time, some officials assured that they would continue to work with the government to ensure financial stability. Prime Minister Sunak promised help to the city following its bankruptcy filing.
In early September, Birmingham is England’s largest municipality. announced about bankruptcy.
Former Prime Minister of Ukraine named Your country is bankrupt.