A section 114 notice is a formal report by a council's chief finance officer under the Local Government Finance Act 1988. The officer must issue one if the council's spending in a year is likely to exceed its resources (section 114(3)), or if it has made or is about to make unlawful spending or a decision causing a loss (section 114(2)). Once a notice is issued, the council cannot enter new spending commitments without the officer's agreement, and councillors must meet within 21 days. The law covers England and Wales only. Northern Ireland has no equivalent, according to the House of Commons Library, and Scotland has no direct one.
Northamptonshire County Council, 2 February 2018
The council's section 151 officer issued the first notice of the modern era after forecast savings failed to materialise and the 2017/18 overspend reached £21.1 million, according to the government's best value inspection report.
Northamptonshire County Council, 24 July 2018
The outgoing finance director, Mark McLaughlin, issued a second notice over a forecast deficit of £60 million to £70 million, saying the council had no financial resilience. This date comes from the Commons Library and Public Finance; we have not seen the notice itself.
Croydon, 11 November 2020
Croydon's then chief finance officer issued the council's first notice as it sought permission from the government to use capital resources to cover day to day spending.
Croydon, 2 December 2020
A second notice followed. Both were lifted in March 2021 after the government agreed capitalisation directions, which let the council use £70 million of capital resources in 2020/21 and £50 million in 2021/22.
Slough, 2 July 2021
The chief finance officer, Steven Mair, issued a section 114(3) notice over an estimated in year deficit of £40 million for 2021/22.
Nottingham City Council, December 2021
The interim finance director, Clive Heaphy, reported unlawful use of the ring fenced Housing Revenue Account, involving £15.86 million, according to a government explanatory memorandum. The Commons Library dates the notice 15 December 2021.
Pembrokeshire County Council, early 2022
The chief finance officer, Jon Haswell, issued a section 114 report over a £95,000 settlement paid to the council's former chief executive, which councillors discussed at an emergency meeting on 1 February 2022, according to trade press reports. On 13 January 2022 the Auditor General for Wales had found that the process behind the payment was "likely to be contrary to law". We have not seen the council's own report.
Northumberland County Council, 23 May 2022
The interim finance director, Jan Willis, reported unlawful spending, including commercial trading through the Northumbria International Alliance and a £40,000 a year allowance paid to the chief executive.
Croydon, 22 November 2022
Croydon's third notice: Jane West, the corporate director of resources, forecast a 2023/24 deficit of more than £77 million.
Thurrock, 19 December 2022
The acting finance director, Jonathan Wilson, issued a section 114(3) notice over a projected in year deficit of £452 million.
Woking, 7 June 2023
The council's notice cited a £1.2 billion shortfall against core funding of £16 million, which it blamed on a historic investment strategy that led to unaffordable borrowing.
Birmingham City Council, 5 September 2023
The interim finance director, Fiona Greenway, issued a section 114(3) notice because the council could not meet equal pay liabilities estimated at £650 million to £760 million.
Birmingham City Council, 21 September 2023
Greenway issued a second notice, under section 114(2), because no decision had been taken on equal pay while the liability grew by £5 million to £14 million a month.
Nottingham City Council, 29 November 2023
The finance director, Ross Brown, issued a section 114(3) notice over a forecast overspend of £23.3 million.
Barnet, 20 January 2025
The chief finance officer, Kevin Bartle, and the monitoring officer, Jessica Farmer, issued a joint report under section 114(2)(a) over unlawful transactions with the council's pension fund, including a £20.477 million prepayment. The report said no money had been lost.
What followed
The Commons Library says Croydon, Slough, Nottingham, Thurrock and Woking were later subject to government intervention, and commissioners were sent into Birmingham in October 2023. Since Barnet's report, several councils have warned they might have to issue a notice, including Hillingdon, Shropshire, Halton and Worcestershire. We found none that had done so by 25 October 2026. Notices over unlawful spending attract little coverage, so this list may not include every one.