Nottingham City Council ‘at risk of bankruptcy’ as green debt piles up, putting thousands of jobs at risk.
A few months ago, Nottingham City Council announced that it had lost tens of millions of pounds of public cash after its renewable energy company Robin Hood Energy (RHE) had collapsed with the loss of 230 ‘green’ jobs.
News reports have suggested that the taxpayers of Nottingham will be out of pocket to the tune of £38.1 million. Robin Hood Energy also owes £12 million in environmental taxes to the Government, but has said it is not likely to be able to pay.
Now, the BBC is reporting that Nottingham City Council is facing bankruptcy.
Instead of creating hundreds of green jobs, Nottingham’s renewable energy disasters and the looming bankruptcy of the Labour-run council threatens the city with a freeze on non-essential spending, putting thousands of real jobs at risk.
Nottingham City Council is at risk of having to declare bankruptcy without a significant bailout, a government inspector has warned.
A rapid review of the authority’s finances was ordered following the collapse of its company Robin Hood Energy.
It found the council could not afford to approve a legally-required budget for 2021-22 as it stands.
Nottingham City Council said it accepted the review’s findings.
The investigation was instigated by the Ministry of Housing, Communities and Local Government after the collapse of Robin Hood Energy.
The council had set up the not-for-profit firm in 2015, claiming it was the first local authority-run energy company in the UK.
It aimed to tackle fuel poverty but lost more than £38m and collapsed with the loss of 230 jobs.