Nottingham City Council’s budget for the coming financial year shows the authority is now financially stable, according to Leader, Councillor Neghat Khan.
The Council approved its budget for 2025/26 at a meeting on 3 March where councillors also gave the green light to an ambitious five-year Council Plan aimed at delivering for local people and leading the city forward.
The Budget for 2025/26 includes £20 million of growth funding to ensure key services are delivered effectively to meet the needs of local people, and an increase in Council Tax of 4.99%, made up of a 2.99% General Fund increase and a 2% Adult Social Care Precept. Nottingham’s increase is in line with the Government set cap.
This has been possible due to £18 million of savings from new ways of working and operational efficiencies plus a better-than-expected financial settlement from the new Labour Government.
A remaining budget gap of £20.79 million for 2025/26, significantly down from the £69 million previously forecast, will be met through Exceptional Financial Support from the Government. This is not additional Government funding but permission for the Council to use funds from the sale of assets to support day-to-day revenue spending.
A renewed Council Plan for 2025 – 2029 was also approved at the Full Council meeting to establish a clear vision and priorities. It sets out the high-level objectives that the Council wants to achieve and includes three core missions – A renewed Council; Delivering for local people and Leading Nottingham forward.
City Council Leader, Councillor Neghat Khan, said: “This budget shows the Council is now financially stable and that we are working towards becoming financially sustainable. It’s about getting our house in order and putting the Council on a sustainable financial footing for the future.
“We know that the people of Nottingham want a council that gets the basics right and delivers the best local services we can afford, whilst also looking ahead so that the city can reach its full potential.
“We continue to face huge pressures in social care, looking after children in our care and homelessness. Like councils across the country, together these pressures are squeezing out other services and making it harder to address the things that matter to us the most.
“Whilst it remains vital that we move to a more financially sustainable position, we must not forget that the tough decisions that we take doesn’t mean we can’t afford to be ambitious; it means we can’t afford not to be.
“We have been honest about the financial challenges we have faced, and we will continue to be open about what we will do and how we will do it. But through this budget and our ambitious vision for Nottingham, we will deliver a renewed council that focusses on delivering for local people so that we lead Nottingham to the future with renewed pride and optimism.”
One year on from their appointment, Government commissioners working with the Council have provided a positive outlook on the progress it has made but highlighted there is still work to do.
Lead Commissioner, Tony McArdle, said: “We have been in place for one year now and have seen much change within the Council. The Council has made significant strides in reversing their decline and starting to implement much-needed transformation.
“We commend the Council for their efforts so far. While there is still a journey ahead, the Commissioners are confident that with the same energy and focus, the Council will continue to make good progress towards meeting their best value duties.”
