Jakarta, CNBC Indonesia – Nottingham City Council is considering issuing a notice effectively declaring itself bankrupt. This comes after the city struggled to balance spending
In its bankruptcy notice, Nottingham will use section 114. By issuing a section 114 notice, the council will have to stop all new spending, other than for services required to be provided by law such as social care, waste collection and protection of vulnerable people.
Council Leader David Mellen, said the city has struggled to balance its books. There was overspending of 23 million pounds (Rp. 443 billion) in the 2023-2024 financial year.
Mellen said around 21 million pounds (Rp. 405 billion) of the excess spending was spent on social care and tackling homelessness. Mellen said the council had “worked hard” but said the declaration was an option to avoid having to take further action to reduce spending.
“We needed to take action and we have, to do what we can to balance the budget in these difficult times,” he told BBC Radio Nottingham, Thursday (16/11/2023).
“At the end of the day, you can’t do anything that’s unnecessary or the city will stop working the way it should,” he added.
Previously, bankruptcy was also announced by the Birmingham City Council. The city halted all spending except essential services.
The deficit arose because the government had difficulty paying salary claims worth a total of 760 billion pounds or around Rp. 14,000 trillion. Meanwhile, England itself continues to be hit by a cost of living crisis.
According to government figures published in October, as many as 104,510 UK households were in “temporary accommodation” up to March 2023. This is up 10% compared to the same time in 2022 and is the highest figure since records began in 1998.
Prime Minister Rishi Sunak’s government has repeatedly promised to end so-called no-fault evictions. Where landlords can force tenants out of their rental property without giving a reason.
The chief executive of housing charity Shelter, Polly Neate, said ministers had failed to understand the scale of the housing emergency. He called for more social housing to be built and more affordable private rental accommodation.
“Decades of inaction have left us with lost rents, rising evictions and high levels of homelessness, and ministers have everyone to blame but themselves,” he said.
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