Nottingham City Council pays £110,000 to financial consultant for five months work

Nottingham City Council is paying an outside financial consultant £110,000 for five months’ work as it seeks to balance its books.

Following the failures of the council’s energy company, Robin Hood Energy, the government appointed an independently chaired Improvement and Insurance Council.

Balancing its books is now a legal requirement, and if it fails to meet expectations, commissioners will be sent to take control of the council’s operations.

These commissioners now have a going rate of £1,200 a day, a cost of which must be borne by the taxpayer.

The city council set out its recovery and improvement plan in January last year, in which it explained how it aims to achieve financial stability over the next two years.

The name of the plan was changed this year because it had the acronym “RIP”.

Council documents have now shown that £110,000 has been approved to pay an external financial consultant to ‘provide external financial expertise in relation to issues raised in respect of council-owned businesses through the report in the report’. Public Interest (RPI) Board Governance Arrangements for Robin Hood Energy.

To read all the biggest and best stories first sign up to read our newsletters here.

It comes after an additional £134,555 was approved to fund the employment of an Acting Corporate Director for Finance and Resources, who is also the Section 151 Officer, between October of last year and March 2022.

He had already paid for the finance director’s job with an outlay of £139,000 between April 1 and September 31 last year.

Board documents state: “This decision is to approve the award of a contract extension from November 1, 2021 to March 31, 2022 regarding the previously approved delegated decision to authorize expenditures for the appointment of a consultant to provide expertise external finance in response to the multiple issues raised in relation to the companies in the Public Interest Report on Nottingham City Council’s governance arrangements for Robin Hood Energy and the report arising from Nottingham City Council’s NSR.

“The total cost of the contract extension is £110,000 and will be incurred in 2021/22. The cost of this decision will be funded from the Improvement and Transformation Reserve.”

Comments are closed.