Staff working for Nottingham City Homes are understood to be "very nervous" about losing their jobs as the city council seeks to bring the housing provider back under its full control. The decision to cancel its contract comes after a series of misspends, some already deemed 'unlawful', were uncovered.
Towards the end of last year it was discovered just under £15m had been wrongly and unlawfully transferred from Nottingham City Council's Housing Revenue Account (HRA) to its general fund. The money was intended for council tenants and their homes, but it was instead used to financially support other council services amid financial constraints.
Evidence of these misspends dates back to 2014/15, but payments beginning in the 1990s are also being investigated. The council commissioned two independent reviews which have uncovered even more misspends up to £40m, with cash said to have been used on non-HRA activities despite it being ringfenced.
