Illegal Activity Involving Nottingham Council Houses as Children's Homes Uncovered

Illegal activity involving the use of Nottingham council houses as children's homes has been uncovered by an auditor. According to Grant Thornton, which has been reviewing Nottingham City Council's yearly accounts, 12 houses owned by the authority under its Housing Revenue Account (HRA) were used as children's homes contrary to legislation.

The issue with the HRA comes after an investigation by the Chartered Institute of Public Finance and Accountancy and Richard Penn, a local government expert, found millions of pounds had been unlawfully transferred from the account. Money from the HRA, intended for council housing and tenants, was wrongly transferred to the council's General Fund for other services over a series of years beginning 2014. The cost to make it right is estimated at around £51m with inflation. Grant Thornton has since discovered further illegal activity dating back to 2009. The council says the issue has been "largely corrected"

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