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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, 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". |
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 the authority "remains critical" and the spending controls would see "limited funding" focused 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 a second 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. | 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. | 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. | "We have been very clear that we did not arrive in Northamptonshire with additional money," Mr Roberts said. |
"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." | "All that is required of the council is that it lives within its means, just like every other council." |
'Completely unprecedented' | |
An extraordinary full council meeting will take place on Wednesday 1 August, with the aim of discussing a new set of spending priorities. | |
A council source suggested to the BBC the scale of possible cuts was "huge...completely unprecedented". | |
"If the government bailed out them out it would open the floodgates for other councils across the country in a similar position to come forward," the source added. | |
A Ministry of Housing, Communities and Local Government spokesman said: "It is essential residents are able to have faith in their council, particularly in the responsible use of taxpayers' money. | |
"These commissioners will continue to work closely with the council as it takes the necessary steps to rebalance its finances." |