Nottingham City Council’s financial problems have improved from ‘terminal’ to ‘critical’

Nottingham: So, the Nottingham City Council is saying their financial troubles have gone from being totally dire to just critical. The deputy leader mentioned that the budget gap for April 2025 has dropped from £69 million to £23.4 million. That’s a pretty big change!

They also found that the overall budget gap for the next four years has shrunk from £172 million to £56.8 million. Cllr Ethan Radford, the deputy leader, credits this improvement to a mix of better-than-expected government support and some major changes they’ve been making.

In December, they announced new savings and cuts, including £17.9 million for next year and £24 million over the next four years. They’re looking at adult social care services and trying to cut back on high-cost care packages. Plus, they’re streamlining management to save some cash.

Now, they’re planning for a council tax increase of 4.99% starting this April, which is the max they can do. But they’re still chatting with the government about possibly needing to raise it even more in the future.

Cllr Radford said while things are looking a bit better, they can’t ignore the tough choices ahead. They’re getting an extra £30 million from the government, which will help, but it doesn’t mean they’re off the hook completely.

Back in November 2023, the council had to admit it was effectively bankrupt because it couldn’t balance its budget. They got the green light from the government to sell off some assets to cover daily costs, up to £65 million.

Looking ahead, they expect to need up to £25 million in exceptional financial support for the 2025/26 year and about £10 million for 2026/27. They’re hoping to balance the budget without help after that, thanks to government grants and more savings.

Since last February, a team of government-appointed commissioners has been helping the council get back on track. They’ve been working hard to review the finances, and the commissioners have praised the finance team for their efforts.

However, there’s still some uncertainty about the final government settlement, so they need to keep a close eye on the budget to make sure they hit their savings targets.

Cllr Kevin Clarke, from the Nottingham Independents, feels like the culture is changing for the better. He thinks the current council leader is more open and willing to collaborate, which is a nice shift from the past.