Nottingham City Council misused parking fines as a cash cow

A secret report revealed that Nottingham City Council, run under the Labor party misused parking fines and spent money like a “cash cow.” A cash cow is a service, product, or property investment. It consistently brings profit with a small amount of investment.

According to the Local Democracy Reporting Service, the council moved wrongfully and illegally millions of pounds to the authority’s general fund over several years. These funds were intended for council housing, residents, and parking. It will likely cost around £51m to compensate for the misused money.

Staff said Nottingham City Council used parking fines as 'cash cow' https://t.co/dwTsBoBEMT
— BBC News (UK) (@BBCNews) February 5, 2024

According to a series of reports, the accounting firm Ernst and Young (EY) interviewed staff of Nottingham Council. The report mentioned that the council focused more on making money than following the rules.

Notably, the Nottingham City Council misused parking fines during the pandemic. The council got a £5m grant from the government because they claimed they lost money from the parking and bus lane fines. However, it is not clear where and how they used this money.

In short, the report summarizes that the Council utilized the money as a “cash cow” to make more money for them rather than invest in the city.

Click here to read the updates on Storm Jocelyn to hit the UK with severe wind and rain after storm Isha

It came when the Information Commissioner’s Office (ICO) ordered the Labor-run council to produce an independent assessment of its finances.

However, the Council declined to publish the full report despite repeated requests under the Freedom of Information (FOI) Act. The Nottingham council said they needed to consider a technical report for officers in a safe space.

Safe space refers to a confidential or protected environment where officers can freely exchange sensitive information without disclosing it to the public or external parties.

However, the authority’s improvement board said that commissioners chosen by the government could take over the council within days. Then, the Nottingham Council published only a 10-page report.