Tory county
council runs
out of cash
SECTION 114
NOTICE ISSUED ...
5% COUNCIL TAX INCREASE
Conservative-run Northamptonshire county
council has issued a section 114 notice - which
means it’s unable to meet its financial
obligations, stating it has faced severe
financial challenges. This means effectively
that a council doesn’t have the resources to
meet current expenditure, that its financial
reserves are depleted and that it has little
confidence that it can bring spending under
control in the near future.
Although councils cannot go bankrupt, this
notice may force central government to
intervene to ensure that local services are
sustainable. Northamptonshire revealed in
December that it would increase council tax by
5% in 2018-19 while cutting its spending by
£34m.
It is understood that the council is facing a
£10m overspend on its budget this year,
mainly driven by rising demand in adult social
care services. The financial situation has been
exacerbated by forecasts that £27m of hoped-
for savings this year have failed to materialise.
SELLING ASSETS TO PAY FOR IT
Last month the council said it was considering
selling its new £53m headquarters, which were
officially opened last October.
Andrew Gwynne, the shadow secretary of
state for communities and local government,
said: “The failure of this Tory-run council
shows that their approach to managing our
public services doesn’t work. There have been
deeply worrying reports for a number of
months that this council was failing in its duty
to the people of Northamptonshire – and now
these people will pay the price for this
negligence.”
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