Nottingham City Council leader Neghat Khan acknowledges the council's £28 million loss from the failed Robin Hood Energy venture, emphasizing a focus on the future. The liquidation process has left many creditors, including the energy regulator Ofgem, with significant unpaid debts.
Nottingham City Council 's leader, Neghat Khan , acknowledges that the authority has 'learnt from its mistakes' following a net loss of at least £28 million due to the Robin Hood Energy debacle. Khan, who previously served as chair of Robin Hood Energy before assuming her current leadership role, emphasizes her focus on the future rather than dwelling on past errors. Companies House documents confirm the official closure of Robin Hood Energy after the completion of its liquidation process.
Previously, Nottinghamshire Live reported that the liquidation process left £53 million unpaid by Robin Hood Energy. The final cost to Nottingham taxpayers has been confirmed as at least £28 million. A statement of affairs released at the start of the liquidation process revealed that Nottingham City Council and its Bridge Estate charity collectively contributed just over £37 million to Robin Hood Energy, which remained outstanding. Liquidators confirmed that for every £1 owed, unsecured creditors, including the city council, received 22p. This means the city council and the Bridge Estate would have recouped approximately £8.5 million, leaving a final cost to taxpayers of at least £28.6 million. A spokesperson for Nottingham City Council stated that this financial burden will not strain the authority's finances, as 'sufficient funding' has been allocated to cover the net amount owed. Councillor Khan asserted, 'In the nine months I've been leader, this council has demonstrated it has learnt from its mistakes and is determined to not repeat them. The latest reports from the commissioners and the government following government intervention last year demonstrate this council is where it needs to be on our improvement journey. Our residents are clear about what they want from us - a renewed council that delivers for local people and leads Nottingham forward. The success of our city relies on the future not the past, and the future of our city is what I'm focused on.' Councillor Kevin Clarke, the leader of the opposition at the city council, first elected in 2019, expressed that the warnings he and other opposition colleagues issued should have been heeded. Clarke stated, 'On at least two occasions, the opposition told them not to extend £10 million loans, but they didn't listen. It was just a non-starter right from the start. You just don't mess with utility companies, it's a minefield. I do think they've learnt some of the lessons now because they had a lot of property that they should have never been involved in that they're now selling off. Only time will tell if they've learnt all the lessons. You just have to feel sorry for some of the people who haven't been paid. They made contracts and through negligence, it's them that have suffered.'A statement released at the beginning of the liquidation process indicated that those owed money by Robin Hood Energy also included the energy regulator Ofgem, which was owed £17.3 million. If Ofgem's claim has been resolved similarly, it suggests that the energy regulator will have received only £4 million of the £17 million it was owed. Councillor Khan, first appointed as a Robin Hood Energy director in 2016 before becoming chair in 2019, added, 'As I've said before, I came in as chair of Robin Hood Energy and very quickly realised things weren't as they were being told, and I subsequently played a key role in closing down the company. As leader of Nottingham City Council, I've been clear about what my job is - getting this council's house in order.'
Nottingham City Council Robin Hood Energy Liquidation Loss Neghat Khan Ofgem Energy Regulator Financial Failure
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Nottingham City Council Faces £28 Million Loss From Robin Hood Energy FiascoNottingham City Council has officially ended up with a net loss of at least £28 million from the collapse of its energy company, Robin Hood Energy. Liquidation documents reveal that the council and its Bridge Estate charity contributed £37 million to the company, but only received back around £8.5 million. Council leader Neghat Khan emphasizes the council's focus on the future and learning from its mistakes.
Read more »
Nottingham City Council Faces Heavy Losses from Collapsed Nottingham Castle TrustThe council provided a loan and had outstanding invoices before the trust went into liquidation. Liquidators say it's uncertain if creditors will receive any money back.
Read more »
Debenhams customers snapping up 'perfect fit' make-up organiser almost 70% offThe waterproof and dustproof organiser is on sale for £28 - down from £89.
Read more »
The best Manchester Airport destinations for the New Year with returns from £28These holiday destinations are perfect for keeping your New Year resolutions
Read more »
Dunelm's £28 thermal curtains help homeowners save on heating billsThe Dunelm Solar Blackout Eyelet Curtains have been hailed for their thermal properties, meaning they'll keep your home toasty warm in the winter and cool in the summer
Read more »
This £28 Charlotte Tilbury Product Is a Secret Weapon for Brightening Dark CirclesA former Charlotte Tilbury makeup artist reveals her go-to product for combating dark circles and achieving a bright, awake look.
Read more »