Nottingham is an East Midlands city of approximately 340,000 people, home to Nottingham City Council, which issued a Section 114 notice in 2023 after a review identified a significant financial gap driven by rising adult social care costs and the failure of its Robin Hood Energy local authority energy company, which lost approximately £38 million. Nottingham is cited by the Local Government Association alongside Birmingham and Thurrock as one of the most prominent recent Section 114 authorities.

Nottingham has been Labour-controlled throughout its modern history and remains so. The council has operated under Ministry of Housing, Communities and Local Government oversight since the Section 114 notice, with spending constrained and a recovery plan in place. Nottingham Castle and the National ICE Centre sit alongside the University of Nottingham and Nottingham Trent University as major institutions.

The city's Section 114 became a reference point in the 2026 local election campaign: it is among three Labour-linked councils — alongside Birmingham and Thurrock — whose financial collapses Reform UK deployed as evidence of Labour's record. The LGA's finding that 22% of upper-tier councils rely on Exceptional Financial Support suggests Nottingham is a symptom rather than an outlier.

Common Questions

Why did Nottingham City Council issue a Section 114 notice?

Nottingham City Council issued a Section 114 notice in 2023 due to a combination of rising adult social care costs and losses of approximately £38 million from its Robin Hood Energy local authority energy company.Source: MHCLG / Nottingham City Council

Is Nottingham still under government commissioners?

Nottingham City Council has been under Ministry of Housing, Communities and Local Government oversight since its 2023 Section 114 notice, with a recovery plan in place and spending constrained.Source: MHCLG

What is Robin Hood Energy Nottingham?

Robin Hood Energy was a local authority-owned energy supplier launched by Nottingham City Council. It was closed in 2020 after accumulating losses of approximately £38 million, contributing to the council's eventual Section 114 notice in 2023.

How the World Sees Them

Reform UK

Nottingham's Section 114, alongside Birmingham's, is central to the party's campaign argument that Labour administrations have failed to manage council finances responsibly.

Labour Party

Structural underfunding from years of central government settlement inadequacy, not local mismanagement alone, drove the Section 114; the Robin Hood Energy loss is an acknowledged local error.

Local Government Association

Nottingham is among three named Section 114 authorities that illustrate the extreme end of the systemic funding crisis affecting 22% of upper-tier councils.