The council is now one of the most indebted local authorities in the country, but the leadership at Enfield Civic Centre has moved to downplay speculation it might have to issue a Section 114 notice – effectively declaring bankruptcy.
A spokesperson for Enfield Council this week said there was “no evidence” to suggest it was close to issuing a Section 114, after the issue was raised by the leader of the Conservative group last week.
This summer, official figures from the Department for Levelling Up, Housing and Communities revealed the council’s £1.12 billion debt was the tenth highest of England’s local authorities.
Councils that have recently issued Section 114 notices – which bar them from making new spending commitments – include Birmingham, Croydon, Thurrock and Woking. Last month Havering in East London also announced it was six to 12 months away from having to do so.
Faced with a projected £39 million budget gap for the 2024/25 financial year, caused largely by higher inflation, borrowing costs and soaring demand for temporary housing, Enfield Council recently proposed several new cuts in a bid to balance its books.
Among the proposals is a significant reduction to a scheme set up to help the most vulnerable residents with their council tax payments, which Labour had pledged to retain at its current level in its election manifesto last year.
During last week’s full council meeting, Conservative opposition leader Alessandro Georgiou warned a Section 114 notice “will come at some point”, adding: “We can play the blame game or we can take the decisions today to mitigate that and to ensure that our residents in the future will not be carrying a significant council tax burden.”
Responding to the speculation, a council spokesperson said: “Like all local authorities, Enfield Council is having to make difficult decisions due to budget challenges caused by inflation and government cuts, but we are…
