Nottingham City Council has joined the list of local authorities who have requested ‘exceptional financial support’ from the Government.
The council issued a Section 114 in November last year, effectively declaring bankruptcy, due to a budget gap of £23.3m.
Communities secretary Michael Gove announced in December that he was ‘minded to’ extend intervention following Nottingham’s issuing of a Section 114 notice.
However, the council urged the Government not to send in commissioners, arguing that such a move would ‘undermine senior officers’.
A council spokesperson said a request for support for 2023/24 and 2024/25 is being discussed with the Department for Levelling Up Housing and Communities (DLUHC).
‘In practical terms this will be to seek permission to “capitalise” revenue expenditure so that it is treated as capital expenditure and can be met from the council’s capital resources,’ they said.