Government to launch investigation into council finances

Nottingham City Council's HQ

The Government is set to launch an investigation into the finances of Nottingham City Council.

The news comes after the fall-out from the loss-making Robin Hood Energy (RHE), which was sold earlier this year to Centrica with 250 people losing their jobs.

A recent report slammed Nottingham City Council for its governance of RHE after it had invested £43m of public money and provided £16.5m of guarantees.

Earlier this year, RHE posted losses of £23.1m over its 2018/19 financial year.

The performance slumped dramatically from a loss of £1.6m over the 2017/18 period after 12 months that bosses at the firm called “tough”.

Revenue improved from £69m to £97.9m over the same period.

A spokesperson for the Ministry for Housing, Communities and Local Government said: “We are monitoring the situation in Nottingham very closely. Councils have a duty to manage taxpayers’ money responsibly and should be held to account where they are found to have failed to do so.”