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).
The most common type of notice is made under section 114(3) which restricts all spending except for that which funds statutory services. Despite the fact that local authorities in the United Kingdom cannot go bankrupt, issuing a section 114 notice is often described in the media as a council effectively declaring bankruptcy. Most councils under a section 114 notice will then pass a new budget to introduce cuts and reduce spending.
