What happens when a section 114 notice is issued?
Asked by: Joanie Carroll | Last update: January 31, 2026Score: 4.6/5 (57 votes)
When a UK local authority issues a Section 114 notice, it signals that its spending will exceed its income, triggering an immediate freeze on non-essential new spending, requiring an emergency council meeting within 21 days, and often leading to deep budget cuts, asset sales, or increased council tax to balance the budget, with government intervention possible if issues persist.
What is section 114?
Councils are required by law to have balanced budgets. If a council cannot find a way to finance its budget then a Section 114 Notice must be issued. The issuing of a Section 114 Notice restricts all new spending with the exception of protecting vulnerable people and statutory services and pre-existing commitments.
How many councils have issued S114?
Fourteen councils have issued section 114 notices since the Local Government Finance Act 1988 became law. Hillingdon and Hackney councils were the first and second to do so, in 2000.
What is section 114 of the local authorities?
- Within the Local Government Finance Act 1988, Section 114 (3) dictates that: ...
- It means that no new expenditure is permitted, with the exception of that funding statutory services, including safeguarding vulnerable people, however existing commitments and contracts will continue to be honoured.
What is section 114 of the Local Government Finance Act 1988?
A section 114 notice is a report issued by the chief financial officer (or Section 151 officer) of a British public body to prevent certain types of expenditure. It takes its name from section 114 of the Local Government Finance Act 1988 (c. 41).
Slough has issued a section 114 notice. What does this mean?
What is the rule of 114 in finance?
Divide 114 by your annual return rate, and that equals the years to triple your money: • Money earning 6%: 114 ÷ 6 = 19 years to triple • Money earning 9%: 114 ÷ 9 = 12.7 years to triple This rule clearly demonstrates why long-term thinking pays off.
What is section 114 of the local government Act 1972?
(1)A local authority shall, in the case of an officer employed by them, whether under this or any other enactment, who by reason of his office or employment is likely to be entrusted with the custody or control of money, and may in the case of any other officer employed by them, take such security, for the faithful ...
What is section 114 of the local government Act 2020?
LOCAL GOVERNMENT ACT 2020 - SECT 114 Restriction on power to sell, exchange or transfer without consideration land.
What are the five types of local authority?
In total there are 317 local authorities in England made up of 5 different types:
- county councils.
- district councils.
- unitary authorities.
- metropolitan districts.
- London boroughs.
What is section 114 of the IEA?
India Code: Section Details. The Court may presume the existence of any fact which it thinks likely to have happened, regard being had to the common course of natural events, human conduct and public and private business, in their relation to the facts of the particular case.
How much do you pay monthly for bankruptcies?
Monthly payments in bankruptcy (mostly Chapter 13) vary widely, typically from a few hundred dollars to over $1,000, depending on your income, debts (especially mortgage/car arrears), and assets, with average payments often cited around $500-$600, but potentially much higher if catching up on secured loans or with higher income. Chapter 7 has no monthly plan payments; you just pay filing fees and attorney costs upfront, with the trustee liquidating non-exempt assets.
What cannot be wiped out by bankruptcies?
Debts that generally cannot be discharged in bankruptcy include child support, alimony, most student loans, certain recent taxes, court-ordered fines and restitution, debts from fraud, and personal injury judgments from DUI-related incidents; these obligations are prioritized by law or result from wrongful conduct and must usually be repaid.
How long can council tax debts be chased in England?
The limitation period for council tax is six years. It is set by regulation 34 Council Tax (Administration and Enforcement) Regulations 1992 (the regulations). The regulations state that a local authority cannot apply for a liability order more than six years after the day the debt fell due.
What are section 114 rules?
The rules implementing section 114 require each financial institution or creditor to develop and implement a written Identity Theft Prevention Program (Program) to detect, prevent, and mitigate identity theft in connection with the opening of certain accounts or certain existing accounts.
What is section 114 of the Secure Act?
SECURE Act, Section 114 increases the required beginning date from age 70½ to age 72 for individuals born on or after July 1, 1949, for all employer-sponsored retirement plans (including 403(b) plans) and IRAs subject to 26 U.S. Code § 401(a)(9).
What is section 114 of the CPC case law?
(c) by a decision on a reference from a Court of Small Causes, may apply for a review of judgment to the Court which passed the decree or made the order, and the Court may make such order thereon as it thinks fit.
Who is higher than the council?
The mayor has greater powers than a council leader and may or may not be a member of the majority party on the council. He/she proposes the budget and policy framework and appoints and chairs the cabinet, which can be single or cross-party.
How does local government affect property taxes?
Your property tax rate is based on your local government's tax assessment of your property. Governments often reassess homes each year and adjust property tax bills accordingly. If your home value goes up, then your property tax bill likely does as well.
What is section 114 of the local government Act?
A report under section 114(3) of the Local Government Finance Act 1988 is required to be made by a local authority's chief finance officer (CFO) if it appears that the expenditure for the authority (including expenditure it proposes to incur) in a financial year is likely to exceed the resources (including sums ...
What is the newest mental health act?
The Mental Health Act 2025 (“the Act”) provides the legal framework to detain and treat people in a mental health crisis who are at risk of harm to themselves or others. It will be phased in over eight to ten years, which will enable services to prepare for the changes.
What is an s114 notice?
The Chief Finance Officer of a local authority is under a statutory duty to issue a formal report if they believe that a council is unable to set or maintain a balanced budget, this is known as a s114 notice.
Who enforces local government acts?
The city manager is appointed by the city council to enforce ordinances, direct daily city operations, prepare the city budget, and implement the council's policies and programs.
What is section 114 of the Companies Act?
Section 114 of the Companies Act outlines the distinctions between ordinary resolutions and special resolutions. This section sets forth the procedural requirements for passing both types of resolutions in a company meeting, including the voting process and the necessary conditions for each type of resolution.