S114 | LocalGov

14 councils ‘likely’ to issue s114s next year

28/02/2024

More than half of councils are likely to issue a section 114 notice within the next parliament unless funding is reformed, senior local authority figures have warned.

Thurrock boosted by £500m after sale

26/02/2024

Thurrock Council has received £510m in payments following the sale of Toucan Energy Holdings – the firm that triggered a section 114 notice when it collapsed.

The financial crisis in Birmingham City Council

22/02/2024

Dr James Brackley and Prof. Adam Leaver of the Audit Reform Lab call for an urgent value for money assessment of Birmingham CC's proposed cuts and asset sales.

Newcastle signs off on £15m spending cuts

21/02/2024

Newcastle City Council’s cabinet has approved budget proposals that will see spending cut by £15m over the next year.

Brum set to sell off £750m of assets

20/02/2024

Cash-strapped Birmingham City Council is set to sell off £750m of assets and cut spending on services by £300m in an effort to balance the books.

Government timetable could push councils to issue section 114s

16/02/2024

Government’s timeline for implementing changes to tackle risky borrowing by some councils could end up pushing councils into S114 territory, treasurers warn.

Nottingham executive refuses to back budget cuts

14/02/2024

Executive members of cash-strapped Nottingham City Council have refused to recommend a report that sets out £20m in budget cuts.

Birmingham councillors back 18% pay rise delay

08/02/2024

Councillors at cash-strapped Birmingham City Council have voted to delay pay increases for members.

Brum granted permission to raise council tax by 10%

07/02/2024

Levelling up secretary Michael Gove has approved Birmingham City Council’s request to increase council tax by up to 10% without a local referendum.

Bradford recruits new director of finance to avoid S114

06/02/2024

Bradford Council has brought in a new interim director of finance as part of its efforts to avoid declaring effective bankruptcy.

Council financial crisis ‘out of control’

31/01/2024

MPs have issued a stark warning on the ‘very real’ prospect of more councils in England ‘effectively going bust’ if the Government does not address a £4bn funding gap.

Bradford increases request for support by £22m

31/01/2024

Bradford Council has increased its request for financial help from the Government by £22m as it struggles to avoid declaring effective bankruptcy.

Havering warns of S114 after ‘minuscule’ funding boost

26/01/2024

Havering Council will be forced to declare effective bankruptcy ‘by the end of February’ if the Government fails to provide more funding, leader warns.

Homelessness costs could spell ‘end of local government’

24/01/2024

The increasing cost of homelessness could lead to more councils declaring effective bankruptcy and the ‘end of local government’, council leaders warn.

Conservative MPs call for emergency funding for councils

22/01/2024

MPs representing county areas have called on the Government to provide emergency funding to cash-strapped councils to prevent further cuts to local services.

Southampton latest to request financial support

19/01/2024

Southampton City Council has begun the ‘sensible’ process of seeking Exceptional Financial Support (EFS) as it struggles to balance its budgets.

Middlesbrough council leaders vote to apply for £15m bailout

18/01/2024

Council leaders at Middlesbrough Council have voted unanimously to apply for a £15m bailout from the Government to avoid effective bankruptcy.

Brum considers axing 600 jobs

17/01/2024

Birmingham City Council could be forced to axe hundreds of jobs as the struggling local authority attempts to balance its books.

Auditor's 'significant concerns' over Dudley finances

15/01/2024

Dudley MBC has received a withering verdict on its finances from external auditor Grant Thornton as it attempts to stave off a section 114 notice.

BCP warns of S114 risk over schools funding

15/01/2024

A growing deficit on its dedicated schools grant (DSG) could force Bournemouth, Christchurch and Poole (BCP) Council to issue a section 114 notice this year.

40% of councils face ‘financial failure’

15/01/2024

Two in five councils in England could see their reserves drop to less than 5% of their net revenue expenditure within the next five years, new study finds.

North Northants leader warns of ‘robust action’ to stem budget crisis

12/01/2024

The leader of North Northamptonshire Council has banned all but essential spending in an urgent bid to solve the authority’s budget pressures.

Somerset in capitalisation request amid ‘financial emergency’

10/01/2024

Somerset Council is to seek a capitalisation direction and permission to raise council tax by up to 10% as it attempts to stave off a section 114 notice.

Council finances ‘worsened’ since finance settlement

08/01/2024

The financial position of local authorities in urban areas has ‘worsened’ since the finance settlement last month, warns local government campaign group.

Nottingham commissioners would 'undermine senior officers'

04/01/2024

Nottingham City Council has urged the Government not to send in commissioners to oversee the running of the authority.

Finance watchdog launches Thurrock investigation

03/01/2024

The Financial Reporting Council has launched an investigation into the conduct of an unnamed accountant at Thurrock before it declared effective bankruptcy.

Tax referendum cap lifted for three councils

19/12/2023

A number of councils are set to raise council tax by up to 10% next year without holding referendums.

Nottingham holds public event to discuss cuts

18/12/2023

Nottingham City Council has announced it will be holding a public event this week to give residents more details on its financial difficulties.

Council funding to increase 6.5%

18/12/2023

Local authorities are set to see their funding increase by 6.5% as the Government attempts to prevent more councils from declaring effective bankruptcy.

Council warns of S114 risk over HS2 costs

15/12/2023

Cheshire East Council has warned that it may have to issue a section 114 notice after spending £11m preparing for HS2, as it continues to press for compensation.

Bradford warns of possible s114

15/12/2023

Bradford Council has warned that it will have to issue an s114 notice, effectively declaring bankruptcy, unless the Government provides ‘exceptional’ support.

Birmingham outlines £150m of cuts

14/12/2023

Birmingham City Council has outlined nearly £150m of proposed savings as it tries to plug a £300m budget gap.

Urban councils warn of S114 ‘surge’

14/12/2023

Local authority leaders have warned the PM that the new year could see a ‘surge’ of effective bankruptcies unless there is a last-minute intervention.

Middlesbrough proposes job cuts as it warns of ‘tough choices’

14/12/2023

Middlesbrough Council has proposed axing 75 full-time equivalent posts and cutting social care costs as it scrambles to set a balanced budget for next year.

Government set to appoint commissioners at Nottingham

13/12/2023

The levelling up secretary is ‘minded to’ escalate government intervention at Nottingham due to ‘serious concerns’ over the city council’s finances and governance.

Nottingham proposes cutting 550 jobs

13/12/2023

Nottingham City Council has proposed cutting 554 full-time equivalent posts in an attempt to tackle its financial shortfall.

Brum workers consider strike over equal pay delays

12/12/2023

Thousands of workers at Birmingham City Council will today start a ballot for strike action in response to equal pay claim delays.

One in five councils report bankruptcy fears

06/12/2023

A poll of council leaders and chief executives has revealed that one in five think it likely that their chief finance officer will need to issue a Section 114.

Brighton’s finances in ‘perilous position’

04/12/2023

Brighton & Hove City Council’s finances are in an ‘extremely perilous position’, the local authority’s leader has warned.

London borough applies for capitalisation direction

30/11/2023

Havering LBC is to apply for a capitalisation direction as it bids to avoid issuing a section 114 notice next year.

Nottingham issues section 114 notice

29/11/2023

Cash-strapped Nottingham City Council has been forced to issue a section 114 notice after revealing it faces a significant in-year deficit.

Councils ‘pushed to the brink’ by children’s social care pressures

20/11/2023

A ‘perfect storm’ of financial pressures and rising numbers of children needing support are putting local authorities at risk of bankruptcy, councils warn.

Derbyshire denies facing ‘bankruptcy situation’

17/11/2023

Derbyshire County Council said ‘serious challenges’ lie ahead despite its progress in tackling its financial shortfall.

Middlesbrough set to sell off buildings to avoid bankruptcy

16/11/2023

Middlesbrough Council is considering selling off several of its buildings in an effort to avoid having to issue a bankruptcy notice.

Job cuts 'inevitable' at Brum

14/11/2023

Birmingham City Council is poised to reveal a worse-than-expected financial position as it embarks on a savings drive and ‘inevitable’ job cuts, The MJ has learned.

Brum commissioners warn council will need further help to agree lawful budget

09/11/2023

Commissioners at Birmingham City Council have warned it will struggle to agree a lawful budget next year without further help.

Somerset declares ‘financial emergency’

09/11/2023

Somerset Council has declared it is facing a ‘financial emergency’ and agreed that ‘urgent actions’ are required to tackle a £100m shortfall.

‘Nothing for local government’ in King’s Speech

07/11/2023

Councils have expressed disappointment that the King’s Speech offered no commitment to improving local government finances or furthering devolution.

Council looks to address £100m ‘black hole’

01/11/2023

Somerset Council is considering measures, including reducing staffing and cutting services to statutory levels, to cover a £100m funding gap.

S114 ‘almost inevitable’ for Leicester

30/10/2023

Leicester City Council is ‘rapidly running out of options’ to cut costs and faces financial crisis ahead of its 2025-26 budget, its mayor has warned Michael Gove.

s114 a 'last resort,' say finance experts

19/10/2023

Section 114 notices should be a very last resort when all else fails, local government finance experts told a Solace Summit session.

Croydon improvement panel details exit strategy

17/10/2023

Croydon LBC’s Government-appointed improvement panel has outlined a timetable for withdrawing from the authority amid ‘strong progress’ in fixing its finances.

Starmer promises council funding reform

13/10/2023

The way local government is funded is too short-term and has resulted in local authorities such as Birmingham CC declaring bankruptcy, Sir Keir Starmer says.

Birmingham agrees job evaluation scheme

13/10/2023

Birmingham City Council has agreed to implement a new job evaluation scheme in a major step towards meeting its £750m equal pay liabilities.

Crawley issues bankruptcy warning over Chagossians funding

12/10/2023

Crawley faces a funding crisis following the decision to grant British citizenship to people of Chagossian descent, the council’s leader has again warned.

London councils face £400m shortfall

11/10/2023

The capital’s boroughs face a £400m funding gap this year, set to rise to £500m in 2024-25, new analysis from London Councils reveals.

Guildford leader survives confidence vote

11/10/2023

Guildford BC’s leader has survived a vote of no confidence over the authority’s finances.

Confidence vote over ‘disturbing disclosures’ and S114 prospect at Guildford

09/10/2023

Tomorrow's meeting of Guildford Borough Council will see a vote of no confidence in the authority’s leader and a request for a best value commissioner among a flurry of fiercely critical motions.

Havering Council facing insolvency, warns leader

03/10/2023

The leader of Havering Council has warned that the London borough was facing insolvency due to increases in social care and homelessness costs.

Councils face record £3.5bn shortfall

28/09/2023

Research has uncovered a £3.5bn shortfall facing councils over the next financial year, revealing ‘true scale of the dire state of local government funding’.

Council to limit non-essential spending amid s114 threat

28/09/2023

Windsor & Maidenhead BC is to limit all non-essential spending as it raised the risk of a section 114.

Brum kicks off job cuts

27/09/2023

Birmingham City Council has started a wide-ranging programme of job cuts under emergency plans.

How to fix local government finance

25/09/2023

Dr Greg Stride & Dr Andrew Walker, LGIU Local Democracy Research Centre, look at the lessons from other countries when it comes to local government finance.

Medway Council bankruptcy ‘very likely’, report warns

22/09/2023

It is ‘very likely’ that Medway Council will be forced to issue a section 114, a financial report has warned.

Derbyshire agrees measures to close £46m budget gap

22/09/2023

Councillors at Derbyshire County Council have signed off on a series of cost control measures to address a £46m budget gap.

Birmingham issues second section 114 notice

21/09/2023

Birmingham City Council has issued a second section 114 notice as it has failed to come up with a plan to meet its equal pay liabilities.

Kirklees in fair funding call

21/09/2023

Kirklees MBC councillors called for a fair funding review to be carried out urgently as they discussed measures to avoid a section 114 notice.

Cash-strapped councils forced to sell £15bn of assets

21/09/2023

About 75,000 public assets worth £15bn have been sold by cash-strapped English councils since 2010, according to Institute for Public Policy Research (IPPR).

Gove announces emergency measures for Birmingham

19/09/2023

The Government has announced emergency measures to help run Birmingham City Council during its financial crisis.

Birmingham City Council leader apologises

18/09/2023

Birmingham City Council leader John Cotton has apologised to the city’s residents and insisted he had ‘no prior notice’ of the council's bankruptcy crisis.

'Cautious optimism’ for Slough but challenges remain

15/09/2023

Slough’s commissioners’ third report allows for ‘cautious and early optimism’, but significant challenges remain for the borough council, Lee Rowley says.

Brum braced for Government intervention

12/09/2023

Birmingham City Council is braced for a wide-ranging Government intervention to help rescue the authority’s bleak finances, and improve political and officer leadership.

LGA: Section 114s show system is 'broken'

11/09/2023

The Local Government Association (LGA) will cite the number of section 114 notices issued by councils as evidence of a ‘broken’ system.

Birmingham Commonwealth Games ‘challenge too far’

07/09/2023

The hosting of the Commonwealth Games by Birmingham City Council last year was a mistake, according to a formed advisor to the local authority.

EXCLUSIVE: Fresh equal pay claims warning

07/09/2023

Councils face a fresh wave of potential equal pay claims after a legal ruling exposed problems with the application of the national pay scheme.

Stoke-on-Trent Council at risk of bankruptcy

05/09/2023

Stoke-on-Trent Council has warned that it is on the verge of bankruptcy and called for a ‘national overhaul’ of social care funding.

Birmingham issues section 114 notice

05/09/2023

The UK’s biggest local authority, Birmingham City Council, has issued a section 114 notice in the face of crippling financial problems.

EXCLUSIVE: Housing pressures may push councils into effective bankruptcy

04/09/2023

Rising housing pressures will force some councils to effectively declare bankruptcy, a local authority chief executive with more than 40 years of experience in the sector has warned.

Guildford halts recruitment after S114 warning

01/09/2023

Guildford Borough Council has stopped hiring until at least October as it attempts to cover a multi-million pound financial shortfall.

Somerset in section 114 warning

31/08/2023

Somerset Council is the latest authority to raise the prospect of a possible section 114 notice.

Nine councils in section 114 warning

25/08/2023

Nine councils within the Special Interest Group of Municipal Authorities (Sigoma) have warned they could issue a section 114 notice by 2025.

Reserves 'critical' at Middlesbrough

16/08/2023

‘Critically low’ levels of reserves have left Middlesbrough Council in danger of issuing a section 114 notice.

Woking staff face redundancy

10/08/2023

All Woking BC staff will go through redundancy consultations by the end of the year as the struggling local authority seeks to tackle its financial problems.

Kirklees spending controls to avert s114

09/08/2023

Senior councillors will be asked to implement a series of cost-cutting measures to combat in-year overspending.

Appointments could spark finance review, says CIPFA chief

03/08/2023

Appointment of a new chief executive, finance director or political leader could provoke an independent review of finances under plans mooted by Rob Whiteman.

Hastings' financial controls 'not fully developed'

31/07/2023

Senior Hastings BC councillors will be urged next week to ‘bring in and embed more stringent financial controls and accountability to urgently reduce spending’.

Woking pauses development of 1,000 homes

27/07/2023

Woking Borough Council has paused a regeneration project involving 1,142 new homes after it issued a Section 114 notice in June.

Northumberland exit payments were unlawful

25/07/2023

Six severance payments totalling more than £1m made by Northumberland Council to senior officers were unlawful, the council’s section 151 officer has concluded.

Intervening at the local level

05/07/2023

After the launch of Oflog yesterday at the LGA conference, Nick Graham, Buckinghamshire Council, takes a step back to look at Government interventions.

Croydon housing staff ballot for strike over job cuts

31/05/2023

Housing staff at cash-strapped Croydon Council are balloting for strike action today over concerns that a restructure could lead to 26 redundancies.

EXCLUSIVE: Councils in dark over new funding stream

18/04/2023

More financial uncertainty is being piled onto councils over the distribution of a fresh funding stream, The MJ has been told.

Croydon pushes ahead with drive to hold former leaders to account

23/03/2023

Croydon LBC has announced ‘unprecedented action’ to hold ex-senior leaders to account for ‘misconduct, wrongdoing and failures in governance’.

Croydon approves 15% tax hike

09/03/2023

Croydon LBC has approved a 15% council tax increase as part of a 2023-24 budget that was originally rejected.

Eastleigh finance review to start

07/02/2023

The Government has commissioned a review of Eastleigh BC’s finances to start this week after concerns over its debt levels.

Gove scales up Thurrock intervention

24/01/2023

Michael Gove has effectively ordered a full intervention of Thurrock Council amid fresh concerns over the authority’s governance, scrutiny and operating model.

DLUHC: No more section 114 notices expected

10/01/2023

Whitehall officials are not expecting councils to issue further section 114 notices in the coming weeks, crediting the sector’s ‘positive’ settlement.

Brown to ask Government to bypass referendum limit

05/01/2023

The chief executive of troubled Slough Council is preparing to ask the Government for permission to increase council tax above the 5% legal limit.

Section 114 notice issued for Thurrock

20/12/2022

Thurrock Council’s interim director of finance, Jonathan Wilson, has issued a section 114 notice as the authority faces a £470m in-year funding gap.

£470m in-year budget gap at Thurrock revealed

29/11/2022

Troubled Thurrock BC has revealed it has no way to fill its £470m in-year budget gap without a Government bailout.

Council's bankruptcy warning over Chagossian influx

16/11/2022

A council has warned it could be forced to effectively declare bankruptcy if it has to fund housing for thousands of people of Chagossian descent.

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