The notice, issued on 2 February 2018, was the first of its kind for nearly 20 years and meant the council stopped spending on all non-statutory services.
Since these severe spending restrictions were implemented, Northamptonshire has been scrambling to secure more funds to provide important services in the face of a predicted overspend of £21.1m.
Consequently, the council has decided to sell its headquarters, which it only moved into in October 2017, in order to use the capital receipts to fund the delivery of services. However, it will continue to occupy the property, leasing the office back from the new owners.
The initial move to the new headquarters was made to save on running costs caused by the council being split between 12 different sites and the council claims that this move “is already saving £53,000 a week”.
A spokesperson for Northamptonshire County Council said: “Under a sale and leaseback arrangement the office complex would be sold as freehold with the council leasing it back for a period of 25 years or more.
“The council will remain in One Angel Square so will still get the benefits from this modern, flexible working environment at the heart of the town centre.”
Concerns over Northamptonshire’s financial management began in January 2018 when communities secretary Sajid Javid sent in an inspector to investigate whether the county was failing to comply with its best value duty.
The county council’s financial problems have come as a result of reduced funding from central government as well as a increased pressure on adult social care services, caused by an ageing population.
Northampton’s misfortune has sparked fears that more councils may also suffer from section 114 orders in the future.
At the time of the section 114 notice, a CIPFA spokesperson said: “We are likely to see other councils reach this point in two or three years if the government does not provide a more sustainable framework for local government finances.”
