Nottingham City Council has declared itself effectively bankrupt after issuing a section 114 notice.
The Labour-run local authority confirmed the announcement on Wednesday, saying its chief financial officer had decided it “isn’t able to deliver a balanced budget for this year, which is a legal requirement”.
As a result of the section 114 notice, all new spending – with the exception of protecting vulnerable people and statutory services – must stop immediately.
It becomes the second local authority this year to fail financially, after Birmingham City Council issued its own 114 notice back in September.
The council has come under financial pressures after its attempt to enter the power market with Robin Hood Energy (RHE) failed in 2020, losing the authority millions.
It later got into trouble after spending millions of pounds ring-fenced for local housing as part of its general budget.
But the authority was also hit hard by changes to central government funding under the coalition government back in 2013/14, as well as soaring inflation and growing demand for social care.
The Department for Levelling Up decided against bringing in a commissioner after the failure of RHE three years ago, but gave an advisory board more powers to ensure the council adhered to their advice – with the threat of the final option hanging over their heads if their financial performance didn’t improve.
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But now the section 114 has been issued, commissioners will likely be brought in to take charge.
A statement from Nottingham City Council said its executive board met last week to discuss a report into its latest financial position, as rumours swirled the authority was on the brink of bankruptcy.
Local or national government – who is to blame for struggling councils?
There is only one real political question about Nottingham City Council: Who shoulders more of the blame for running out of money – central government or the local politicians themselves?
Council budgets have been squeezed ever since George Osborne became chancellor in 2010: seen as an easy target for a Treasury hunting for savings.
According to the Local Government Association, since 2010 there has been a 27% real-terms cut in core spending power.
Given the spending pressures from inflation, particularly on social care, councils everywhere are suffering.
That said, of the 113 local councils in England, only 13 councils have issued section 114 notices – the action a local authority must take when it is about to spend more than their income. Birmingham was the last council to make the order in September, with Woking, Thurrock and Croydon before that.
Research by the Institute for Government found there is no correlation between the party that has political control of an authority and the likelihood of issuing a section 114 notice.
However, the government is very keen to make this a partisan issue, since Nottingham is a Labour council, and has been since 1998 – with not a single Conservative in the council chamber.
The council themselves blamed children’s and adults’ social care, rising homelessness and the impact of inflation, and claimed the “funding model” is broken.
However, the saga of “Robin Hood Energy” left a big dent in both the accounts and their credibility.
This scheme was established in 2015, set up to help people struggling with rising bills, and was heralded by Jeremy Corbyn when he was leader of the Labour Party – however it was unable to pay its bills, and ultimately closed, costing taxpayers £38m.
A damning report by an external auditor found the council was guilty of “institutional blindness” over RHE, prioritising political objectives over reality.
It found the council did not know the scale of the risk they had taken on and criticised the culture at the council, the reporting process and the way the company was handled, as well as the lack of accountability.
Hubris or well-intentioned but misguided, the council is still paying the price.
Whether the public draws political lessons remains to be seen.
It said the report highlighted that “a significant gap remains in the authority’s budget, due to issues affecting councils across the country, including an increased demand for children’s and adult social care, rising homelessness presentations and the impact of inflation”.
But, it added: “Past issues relating to financial governance… and an overspend in the last financial year have also impacted on the council’s financial resilience and ability to draw on reserves.”
Leader of Nottingham City Council David Mellen told Sky News. “We are going to be paying our staff. We are just saying in this financial year we’ll be overspending against our budget.
“For 13 years we have been underfunded, pressures on us from services are difficult.
“Many other councils are struggling – we are not the first, we won’t be the last. We are not incompetent – the government has not funded us properly.
“We have lost £100m in our budget every year for the past 10 years.”
All of the city’s councillors will now have to hold a meeting in the next three weeks to discuss the ongoing issues.
But Nottingham City Council said both senior officers and its members “remain committed” to working with the government and its advisers to “put the council on a stable financial footing for the future”.
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However, Nottinghamshire MP and government minister Robert Jenrick attacked the Labour leadership at the council, saying they had “proven themselves utterly unfit to govern this great city”.
He added: “Their breathtaking waste and incompetence have let residents down for long enough. It’s time for the secretary of state to appoint commissioners to restore order.”
Radicalised nine-year-olds, teenagers mixing incel culture with extreme right ideologies and a Muslim who idolises Hitler – this is just some of the casework of those tasked with deradicalising young extremists in the UK.
Monday will mark 20 years since the 7/7 attacks on the London transport network when four suicide bombers killed 52 people and injured 770 others.
A year later the government set up its deradicalisation programme Prevent as part of its counter-terrorism strategy.
Sky News has spoken to two leading intervention providers (IPs) at Prevent who both say their work is getting ever more complex and the referrals younger.
The Metropolitan Police’s Prevent co-ordinator, Detective Superintendent Jane Corrigan, has also told Sky News it is “tragic” that when it comes to terrorism, “one in five of all our arrests is a child under 17”.
She believes parents should talk to their children about what they are reading and seeing online.
“Parents instinctively know when something doesn’t feel right when their child is becoming withdrawn or isolated – not wanting to engage,” she says.
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People worried that someone they know has thoughts that could lead to terrorism can refer them to Prevent.
Image: File pic: iStock
‘A pic-n-mix of ideologies’
Home Office figures show 11-year-olds are the largest age group to get referred.
Concerning cases are passed on to IPs such as Nigel Bromage who told Sky News: “Often there will be a pic-n-mix of ideologies.
“From my own examples and experience, we are aware of people looking at the incel culture and mixing that with some far-right elements.”
Image: Sky’s Jason Farrell with intervention provider Nigel Bromage, who was exposed to extremism when he was a child
Incels, meaning “involuntary celibates” are men who have been unable to have a relationship with women despite wanting one and become misogynistic and hateful as a result.
Like many IPs, Mr Bromage from Birmingham comes from an extremist background himself, having once been a regional organiser for the proscribed Neo-Nazi group Combat 18.
For him too, it began as a child.
“It all started with someone giving me a leaflet outside my school gates,” Mr Bromage says.
“It told me a horrific story about a mum getting killed by an IRA bomb explosion – and at the end of the leaflet there was a call to action which said: ‘If you think it’s wrong then do something about it’.”
He developed a hatred for Irish republican terrorism which morphed into general racism and national socialism.
“At the very end I thought I was going to go to prison, or I would end up being hurt or even killed because of my political beliefs,” he says.
Image: Mr Bromage says his youngest case involved a nine-year-old
Boy, 9, groomed by his brother
Mr Bromage reveals his youngest case was a nine-year-old who had been groomed by his brother.
“He was being shown pro-Nazi video games, and his older brother was saying ‘when I go to prison or I get in trouble – they you’re the next generation – you’re the one who needs to continue the fight’,” he says.
“Really, he had no interest in the racist games – he just wanted to impress his brother and be loved by his brother.”
Every year, nearly 300 children who are 10 or younger are referred to Prevent.
Home Office figures show that over the last six years 50% of referrals were children under the age of 18.
Eleven-year-olds alone make up a third of total referrals, averaging just over 2,000 a year, with the figure rising even higher in the most recent stats.
Another IP, Abdul Ahad, specialises in Islamic extremism.
He says the catalyst for radicalisation often comes from events aboard.
Ten years ago, it was Syria, more recently Gaza.
“It is often a misplaced desire to do something effective – to matter, to make a difference. It gives them purpose, camaraderie and belonging as well – you feel part of something bigger than you,” he says.
Image: Fifty-two people were killed on 7 July 2005 when four suicide bombers blew up three London Underground trains and a bus. Pic: PA
Clients want someone to ‘hear them’
Some of his clients “don’t fit into any particular box”.
“I’m working with a guy at the minute, he’s a young Muslim but he idolises Hitler and he’s written a manifesto,” he says.
“When you break it down, some people don’t know where they fit in, but they want to fit in somewhere.”
Mr Ahad says the young individual mostly admires Hitler’s “strength” rather than his ideologies and that he was drawn to darker characters in history.
Often his clients are very isolated and just want someone to “hear them”, he adds.
Image: Intervention provider Abdul Ahad specialises in Islamic extremism
Mr Ahad is also an imam who preaches at the Al-Azar Mosque in South Shields, a well-regarded centre for community cohesion and outreach.
He uses his understanding of the Islamic faith in his Prevent sessions to help guide his referrals away from extreme interpretations of the Koran by offering “understanding and context”.
He says: “We quote the correct religious texts – we explain their responsibility as a Muslim living in the UK and we re-direct their energies into something more constructive.”
Common theme of mental health issues
Mental health problems are a common theme among those referred to Prevent including depression and autism.
Her mother was critical of Prevent, as well as the police and MI5 after she had referred her daughter to the deradicalisation programme and Rhianan was subsequently charged with terrorism offences.
Last month a coroner found some failings in the processes around protecting Rhianan, but none of them attributable to Rhianan taking her own life.
Det Supt Corrigan says a referral doesn’t mean individuals end up being arrested or on an MI5 watchlist.
She says: “You’re not reporting a crime, but you are seeking support. I would say the earlier you can come in and talk to us about the concerns you have the better. Prevent is just that – it is a pre-criminal space.
“It’s tragic when you see the number of young people being arrested for very serious charges. Just look at terrorism – one in five of all our arrests is a child under the age of 17. We need to think about how we respond to that.”
Prevent has been criticised for failures such as when Southport killer Axel Rudakabana failed to be recognised as needing intervention despite three referrals, or when MP David Amiss’ killer Ali Harbi Ali went through the programme and killed anyway.
Image: Axel Rudakubana failed to be recognised as needing intervention despite three referrals. Pic: Merseyside police
It’s harder to quantify its successes.
Mr Ahad says he understands why the failures hit the headlines, but he believes the programme is saving lives.
He says: “I think the vast majority of people get radicalised online because they are sitting in their room reading all this content without any context or scholarly input. They see one version of events and they get so far down the rabbit hole they can’t pull themselves out.
“I really wish Prevent was around when I was a young, lost 15-year-old because there was nothing around then. It’s about listening to people engaging with them and offering them a way of getting out of that extremism.”
Image: File pic: iStock
‘Radicalisation can happen in days to weeks’
Det Supt Corrigan says: “I’ve sat with parents whose children have gone on to commit the most horrendous crimes and they all spotted something.
“Now, with hindsight, they wished they had done something or acted early. That’s why we created this programme, because radicalisation can happen in days to weeks.”
Twenty years on from 7/7 the shape of the terrorist threat has shifted, the thoughts behind it harder to categorise, but it is no less dangerous.
Image: Liverpool’s captain Virgil van Dijk. Pic: Reuters
Image: Liverpool’s Ryan Gravenberch and Cody Gakpo (right) arrive at the funeral of Diogo Jota and Andre Silva. Pic: PA
Jota, 28, leaves behind his wife of only 11 days, Rute Cardoso, and three young children.
His younger brother, 25, was an attacking midfielder for Penafiel in the second tier of Portuguese football.
Liverpool manager Arne Slot, captain Virgil Van Dijk and teammates including Andy Robertson, Conor Bradley, Ryan Gravenberch, Cody Gakpo, Curtis Jones, Darwin Nunez and Joe Gomez were seen at the service.
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Former teammates Jordan Henderson, James Milner and Fabinho were also there.
Van Dijk carried a red wreath with Jota’s number 20, while Robertson had a wreath featuring number 30, Silva’s number at Penafiel.
Image: Manchester United and Portugal player Bruno Fernandes. Pic: PA
Image: Liverpool’s captain Virgil van Dijk and Liverpool’s player Andrew Robertson. Pic: Reuters
Some of Jota’s teammates in the Portuguese national side also attended, including Bruno Fernandes, of Manchester United, Ruben Dias and Bernardo Silva, of Manchester City, Joao Felix and Renato Veiga, of Chelsea, Nelson Semedo, from Wolves, Joao Moutinho and Rui Patricio.
Ruben Neves was one of the pallbearers after flying in from Florida where he played for Al Hilal in the Club World Cup quarter-final on Friday night.
‘More than a friend’
In a post published on Instagram before the service, he told Jota he had been “more than a friend, we’re family, and we won’t stop being that way just because you’ve decided to sign a contract a little further away from us!”
Jota’s fellow Liverpool midfielder, Alexis Mac Allister, said on Instagram: “I can’t believe it. I’ll always remember your smiles, your anger, your intelligence, your camaraderie, and everything that made you a person. It hurts so much; we’ll miss you. Rest in peace, dear Diogo.”
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Porto FC president Andre Villas-Boas and Portugal national team manager Roberto Martinez were also in attendance.
‘With us forever’
Speaking after the ceremony, Martinez said the period since their deaths had been “really, really sad days, as you can imagine, but today we showed we are a large, close family.
“Their spirit will be with us forever.”
The service was private, but the words spoken by the Bishop of Porto, Manuel Linda, were broadcast to those standing outside the church.
He told Jota’s children, who were not at the service, that he was praying for them specifically, as well as their mother and grandparents.
“There are no words, but there are feelings,” he said, adding: “We also suffer a lot and we are with you emotionally.”
The brothers died after a Lamborghini they were travelling in burst into flames following a suspected tyre blowout in the early hours of Thursday morning.
No other vehicles are said to have been involved in the incident.
Liverpool have delayed the return of their players for pre-season following Jota’s death and players past and present paid tribute to him and his brother on social media.
Rachel Reeves has hinted that taxes are likely to be raised this autumn after a major U-turn on the government’s controversial welfare bill.
Sir Keir Starmer’s Universal Credit and Personal Independent Payment Bill passed through the House of Commons on Tuesday after multiple concessions and threats of a major rebellion.
MPs ended up voting for only one part of the plan: a cut to universal credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.
Initially aimed at saving £5.5bn, it now leaves the government with an estimated £5.5bn black hole – close to breaching Ms Reeves’s fiscal rules set out last year.
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Rachel Reeves’s fiscal dilemma
In an interview with The Guardian, the chancellor did not rule out tax rises later in the year, saying there were “costs” to watering down the welfare bill.
“I’m not going to [rule out tax rises], because it would be irresponsible for a chancellor to do that,” Ms Reeves told the outlet.
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“We took the decisions last year to draw a line under unfunded commitments and economic mismanagement.
“So we’ll never have to do something like that again. But there are costs to what happened.”
Meanwhile, The Times reported that, ahead of the Commons vote on the welfare bill, Ms Reeves told cabinet ministers the decision to offer concessions would mean taxes would have to be raised.
The outlet reported that the chancellor said the tax rises would be smaller than those announced in the 2024 budget, but that she is expected to have to raise tens of billions more.
Sir Keir did not explicitly say that she would, and Ms Badenoch interjected to say: “How awful for the chancellor that he couldn’t confirm that she would stay in place.”
In her first comments after the incident, Ms Reeves said she was having a “tough day” before adding: “People saw I was upset, but that was yesterday.
“Today’s a new day and I’m just cracking on with the job.”
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“In PMQs, it is bang, bang, bang,” he said. “That’s what it was yesterday.
“And therefore, I was probably the last to appreciate anything else going on in the chamber, and that’s just a straightforward human explanation, common sense explanation.”