Govt to step back after Nottingham ‘gets house in order’

Commissioners overseeing improvements at Nottingham City Council are set to depart at the end of this month, after the government told the authority it had made significant progress over the past two years.

Then-Minister for Local Government Kemi Badenoch ordered an intervention at Nottingham in 2022, in response to what she described as a “deeply concerning picture of serious historic financial and governance failings” at the authority.

Nottingham City Council had previously issued a Section 114 notice in December 2021, effectively declaring itself bankrupt, after it discovered unlawful accounting practices associated with its ring-fenced Housing Revenue Account, totalling in excess of £15m.

Commissioners were sent in during 2024 with a remit to make improvements at the authority, which the government said was failing in its duty to get the best value from public money for residents.

Now, almost two years later, full decision-making powers are set to be restored at Council House, with Secretary of State, Steve Reed MP, ready to end the commissioners’ two-year appointment on 22 February.

Council Leader, Cllr Neghat Khan, said the move by central government was a recognition of the “strong improvements in governance, financial management and leadership stability” at the authority.

She said the council had now “got its house in order”, having reduced levels of council debt by more than 60% since 2024.

“We’ve always said that our priority was to deliver improvements right across the Council so that the Commissioners leave as planned. With the return of all statutory powers to the council, we’ve done just that,” she said.

“Whilst we know that there is more to do and we must not be complacent in leading Nottingham forward, our focus now must be on delivering continuous improvement for Nottingham and our residents. We are ambitious for Nottingham and are committed to being the most improved Council in the country.”

Should commissioners depart as planned at the end of the month, a reduced package of central government oversight will continue in the city for a further 18 months, with two ministerial envoys appointed.

Neither would have any decision-making powers.

In response, council Chief Executive, Sajeeda Rose, said the authority welcomed the provision of “ongoing expertise” from the government, adding that it would work closely with them over the coming months to secure further improvements.

“The departure of Commissioners is a major milestone in our improvement journey. We are now a stronger, more stable organisation and that is because of the hard work, commitment, skills and expertise of council staff and councillors,” she added.

In a statement, lead commissioner to the authority, Sharon Kemp, commended Nottingham City Council for making “significant improvements” since the original ministerial directions in February 2024.

“As we step down as Commissioners, we are pleased to see the council working in very different ways from when we arrived, this is clearly having an impact and bodes well for the future,” she said.

“Whilst further improvement is required, it is encouraging to see the council acknowledging this and engaging constructively with the government and the sector to drive continued improvement. We wish the council every success in the next phase of their improvement journey.”