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Nottingham City Council's Loxley House.
Questions have been raised over whether Nottingham City Council should have been declared effectively bankrupt two years ago .
The authority has passed on information to a financial organisation over the decision, which has contributed to further widespread cuts across the city.
Senior councillors say they were prevented from scrutinising the move – highlighting that councils with far greater budget gaps avoided a similar fate.
On November 29, 2023, the Labour-led council’s corporate director for finance – known for legal reasons as its Section 151 officer – issued a notice that, in effect, declared the authority bankrupt.
While councils cannot technically go bankrupt in the traditional sense, the issuing of the Section 114 notice meant