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Troubled Northamptonshire County Council bans spending again Troubled Northamptonshire County Council bans spending again
(35 minutes later)
A cash-strapped council has imposed emergency spending controls for the second time this year.A cash-strapped council has imposed emergency spending controls for the second time this year.
The section 114 notice bans all new expenditure at Northamptonshire County Council (NCC), with the exception of statutory services for protecting vulnerable people. The section 114 notice bans all new expenditure at Northamptonshire County Council, with the exception of statutory services for protecting vulnerable people.
It follows an issuing of the same notice in February.It follows an issuing of the same notice in February.
Two government-appointed commissioners are running the authority, with one calling its finances "truly perilous".Two government-appointed commissioners are running the authority, with one calling its finances "truly perilous".
In a letter to councillors, chief finance officer Mark McLaughlin outlined the challenges facing the council, including a potential budget shortfall in this current financial year of between £60m and £70m. The council is facing a potential budget shortfall in the current financial year of between £60m and £70m, according to chief finance officer Mark McLaughlin
Council leader Matthew Golby said: "The financial challenge facing Northamptonshire County Council remains critical and the spending controls we have in place are vital to ensure we are focusing our limited funding on only the most essential services." Council leader Matthew Golby said the financial challenge facing the authority "remains critical" and the spending controls would see "limited funding" focused on "only the most essential services".
The decision to issue the notice was made in discussion with commissioners Tony McArdle and Brian Roberts, the council said. The decision to issue a second notice was made in discussion with commissioners Tony McArdle and Brian Roberts, the council said.
The Conservative-led council's first section 114 notice in February was believed to be the first issued in more than 20 years.
In a statement, commissioner Mr Roberts said the latest notice "underlines the truly perilous state" of the authority's finances.
"We have been very clear that we did not arrive in Northamptonshire with additional money," Mr Roberts said.
"And that to put itself on a secure financial footing very difficult decisions will need to be taken. It is clear the time for these decisions is now.
"All that is required of the council is that it lives within its means, just like every other council."
An extraordinary full council meeting will take place on Wednesday 1 August with the aim of discussing a new set of spending priorities.An extraordinary full council meeting will take place on Wednesday 1 August with the aim of discussing a new set of spending priorities.
More to follow.