Northamptonshire County Council to have section 114 notice lifted

Northamptonshire County Council is lifting the Section 114 notice which banned any new expenditure.

The decision comes following a recommendation from the two government appointed inspectors who were brought in to oversee the council’s turbulent financial crisis - Tony McCardle and Brian Roberts (now finance commissioner at the council), who have many years’ experience of running local councils, were appointed by Secretary of State James Brokenshire after severe financial failings which saw the council only just manage to balance its books last financial year.

The ban on new expenditure, known as a Section 114 notice, has been implemented twice within the last 18 months the latest one being brought in in July 2017. This was the first time it had been implemented by any local government in two decades.

The council appears to be closing in on balancing its in-year budget for 2018/19. The commissioners say that the latest financial monitoring report, which will be released next week and covers the first 11 months of the year, is broadly balanced for the first time in seven years.

In November, the government allowed the council to use £70 million of its capital funds - normally reserved for building and infrastructure projects - to be spent in its revenue stream, which includes adult social care and education.

Brian Roberts, the finance commissioner for the council, said:

"We are impressed that this has been achieved without the use of any funds other than those budgeted for at the beginning of the year.

"The county council is living within its own means and has demonstrated that it is capable of doing so without putting services at further risk. It is a significant achievement which reflects well upon the members and staff of the authority.

"Whilst the disciplines of the s114 process have assisted in this - and will be retained - there is no longer a need for the council to live under the shadow of this failure. The work to restore the operating capabilities of many of the council's services, which have been greatly diminished over the years, can continue as the council prepares to place these services into proposed new arrangements for two unitaries in the county area.”

The final update on the 2018/19 financial year is due to be discussed at the next cabinet meeting on Tuesday April 9.

Leader Councillor Matt Golby added: “Earlier this year I said that all indications were that we were turning a corner and we had successfully built stability back into the council’s finances.

“Today’s announcements by the commissioners further underlines this point. We are due to publish our latest monitoring report next Monday and all indications are that we are now balancing our budget. Given that at one point the deficit stood at £64million this is an incredible achievement.

“All of this has been achieved utilising our own financial resources. The commissioners, our chief executive, her leadership team, my cabinet colleagues and indeed every member of staff at the council have worked tirelessly to achieve what so many people thought unachievable.

“Of course this does not mean the lifting of strict financial controls, we will never again be complacent and we must continue with the energy and commitment we have shown to get us this far to further strengthen our finances and critically transform our services so they can move forward with confidence.”